Question

Absolute cost advantage model
explain
the main parel of modelo
and its Assumption and limitation.​

Answer 1

Answer:

In economics, absolute advantage refers to the capacity of any economic agent, either an individual or a group, to produce a larger quantity of a product than its competitors. Introduced by Scottish economist, Adam Smith, in his 1776 work, “An Inquiry into the Nature and Causes of the Wealth of Nations,” which described absolute advantage as a certain country’s intrinsic capability to produce more of a commodity than its global competitors.