Absolute vs. Comparative Advantage
Media Type: Office Hours Topic: Supply & Demand, International Trade & Finance
- Dig This?
Like it? Share it!
Even if you have an absolute advantage, you can still benefit from specializing in the production of goods where you are the low opportunity cost producer. You can then exchange with others who have also specialized in the production of goods where they are the low opportunity cost producer.
- Your Thoughts
- Was this helpful to you? (12 votes)
- Related Content