Business
Anabely
2016-04-15 23:02:21
What is Absolute and comparative advantage
ANSWERS
jeniferconaway
2016-04-16 03:53:14

Absolute Advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group. Comparative Advantage is the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. The producer that requires a smaller quantity inputs to produce a good is said to have an absolute advantage in producing that good. Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another

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