The theories of absolute advantage and comparative advantage say that nations benefit from trading because of the gain from what. Introduction: The ability of a nation to produce more efficient goods than other countries is known as absolute advantage. Comparative advantage is a theory when a nation is unable to produce a good more efficiently than other country but it can produce goods more efficiently than it can any other good.

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.3, Problem 3QS3

Summary Introduction

To Explain:

The theories of absolute advantage and comparative advantage say that nations benefit from trading because of the gain from what.

Introduction:

The ability of a nation to produce more efficient goods than other countries is known as absolute advantage.

Comparative advantage is a theory when a nation is unable to produce a good more efficiently than other country but it can produce goods more efficiently than it can any other good.

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Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.3, Problem 3QS3

Summary Introduction

To Explain:

The theories of absolute advantage and comparative advantage say that nations benefit from trading because of the gain from what.

Introduction:

The ability of a nation to produce more efficient goods than other countries is known as absolute advantage.

Comparative advantage is a theory when a nation is unable to produce a good more efficiently than other country but it can produce goods more efficiently than it can any other good.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.3, Problem 3QS3

Summary Introduction

To Explain:

The theories of absolute advantage and comparative advantage say that nations benefit from trading because of the gain from what.

Introduction:

The ability of a nation to produce more efficient goods than other countries is known as absolute advantage.

Comparative advantage is a theory when a nation is unable to produce a good more efficiently than other country but it can produce goods more efficiently than it can any other good.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.3, Problem 3QS3

Summary Introduction