How do comparative advantage and absolute advantage differ? Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced. Absolute advantages is a relative concept when comparing production of different items, and comparative advantage means a country is better at at one particular good. Comparative advantage implies a country is better at producing everything better than another country and absolute advantage means they're better at a few things. Comparative advantage refers to production of agricultural goods while absolute advantage refers to industrial production.
How do comparative advantage and absolute advantage differ? Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced. Absolute advantages is a relative concept when comparing production of different items, and comparative advantage means a country is better at at one particular good. Comparative advantage implies a country is better at producing everything better than another country and absolute advantage means they're better at a few things. Comparative advantage refers to production of agricultural goods while absolute advantage refers to industrial production.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 7SQ
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Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced.
Absolute advantages is a relative concept when comparing production of different items, and comparative advantage means a country is better at at one particular good.
Comparative advantage implies a country is better at producing everything better than another country and absolute advantage means they're better at a few things.
Comparative advantage refers to production of agricultural goods while absolute advantage refers to industrial production.
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