Answered

Identify the difference between absolute advantage and comparative
advantage
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Absolute advantage when there is multiple countries that produces an item and
comparative is when multiple countries specialize in a product
Absolute advantage when there is only one country that produces an item and
comparative is when a country specializes in a product
Absolute advantage when there is multiple countries that produces an item and
comparative is when a country specializes in a product
Absolute advantage when there is only one country that produces an item and
comparative is when multiple countries specialize in a product

Verified Answer :

GinnyAnswer

Final answer:

Absolute advantage is about producing efficiently, while comparative advantage is about lower opportunity cost. Specialization based on comparative advantage benefits trade.


Explanation:

Absolute advantage refers to a country's ability to produce a specific good more efficiently using fewer resources, while comparative advantage occurs when a country can produce a good at a lower opportunity cost compared to other countries. Specializing based on comparative advantage leads to mutual benefits through trade.


Learn more about Comparative advantage vs Absolute advantage here:

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