Question

what is meant by absolute cost difference
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Answer 1

The absolute cost difference arises when one country is in a position to produce at a very low cost compared to another country and the other country can produce some other commodity at a very low cost compared to the first country.

Answer 2

We speak of an absolute- differences in costs because each country can produce one commodity at an absolutely lower cost them the other. Thus, in such a situation, a division of labour between them must lead to an increase in total output.