"distinguish between an absolute advantage and a comparative advantage. cite an example of a country that has an absolute advantage and one with a comparative advantage.
Distinguish between an absolute advantage and a comparative advantage is discussed below.
Explanation:
Absolute advantage and a comparative advantage
Absolute advantage concentrates on the marginal cost of reproduction of an asset whereas comparative advantage characteristically concentrates on the opportunity cost of production.
Trading judgments based on comparative advantage between nations are forever respectively advantageous.
