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What is the difference between absolute advantage and comparative advantage?
Absolute advantage is the ability to produce a good or a service at a lower production cost than competitors.
Comparative advantage is the ability to produce a good or service at a lower opportunity cost than competitors.
Absolute advantage is the ability to produce a good or a service at a lower opportunity cost than competitors.
Comparative advantage is the ability to produce a good or service at a lower production cost than competitors.
Absolute advantage is the ability to sell a good or a service at a lower price than competitors. Comparative
advantage is the ability to sell a good or service at a higher price than competitors.
Absolute advantage is the ability to sell a good or a service at a higher price than competitors. Comparative
advantage is the ability to sell a good or service at a lower price than competitors.



Answer :

GinnyAnswer

Final answer:

Absolute advantage is producing at lower costs, while comparative advantage relates to lower opportunity costs in production.


Explanation:

Absolute advantage refers to the ability to produce a good with lower production costs, while comparative advantage is the ability to produce a good with lower opportunity costs. For example, if Country A can produce cars more efficiently than Country B, it has an absolute advantage in car production. However, if Country A has a lower opportunity cost in producing computers instead of cars compared to Country B, it has a comparative advantage in computer production.


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