Eileen has an absolute advantage in the production of rye, and Clancy has an absolute advantage in the production of corn. 2 bushels of rye, whereas Eileen's opportunity cost of producing 1 bushel of corn is opportunity cost of producing corn than Eileen, Clancy ▼ has a comparative Clancy's opportunity cost of producing 1 bushel of corn is 5 bushels of rye. Because Clancy has a lower advantage in the production of corn, and has a comparative advantage in the production of rye.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.