Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

What is the difference between absolute advantage and comparative advantage?

A. 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.

B. 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.

C. 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.

D. 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.

Sagot :

GinnyAnswer

Final answer:

Absolute advantage is about lower production costs, while comparative advantage is related to lower opportunity costs. The example of TVs and smartphones illustrates the difference.


Explanation:

Absolute Advantage vs. Comparative Advantage

Absolute advantage is the ability to produce a good at a lower production cost, while comparative advantage is the ability to produce a good at a lower opportunity cost.

For example, if Country A can produce both TVs and smartphones more efficiently than Country B, Country A has an absolute advantage in both. However, if the opportunity cost of producing TVs instead of smartphones is lower for Country A compared to Country B, Country A has a comparative advantage in TVs.


Learn more about Difference between absolute advantage and comparative advantage here:

https://brainly.com/question/14799979


Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.