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11 Dec 2019
The primary difference between absolute and comparative advantage is:
(i) absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost.
(ii) absolute advantage refers to the ability to produce a good or service at a lower opportunity cost and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources.
(iii) absolute advantage is a concept that was utilized in communist countries and comparative advantage is a capitalist idea.
(iv) absolute advantage can never change while comparative advantage depends on the relative cost of a good's resources.
The primary difference between absolute and comparative advantage is:
(i) absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost.
(ii) absolute advantage refers to the ability to produce a good or service at a lower opportunity cost and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources.
(iii) absolute advantage is a concept that was utilized in communist countries and comparative advantage is a capitalist idea.
(iv) absolute advantage can never change while comparative advantage depends on the relative cost of a good's resources.
18 Dec 2021
pentest1820Lv10
18 Dec 2021
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Jeffrey
JD Candidate at Stanford Law School2 Jun 2020
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