Question

What is comparative advantage and absolute advantage?

Answer 1

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.The differentiation between the varying abilities of nations to produce goods efficiently is the basis for the concept of absolute advantage. ... Whereas absolute advantage refers to the superior production capabilities of one nation versus another, comparative advantage is based on the concept of opportunity cost. I hope the answer was helpful to you If it was please mark it as brainlist ❤️

Answer 2

the producers that require a small quantities inputs to be produced a good is said to be absolute advantage but comparative advantage refers to the ability of a party to produce a particular goods