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absolute advantage is when a country,company, indivdual or region can produce a good better and at a cheaper cost than any other competitor.
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Explain how absolute and comparative advantages were used in your simulation?
Explain how absolute and comparative advantage were used in your simulation.
What is the ability of an entity to produce a good at an opportunity cost that is lower than that of another producer?
Comparative advantage :)
Can a person have an absolute advantage in two tasks and a comparative advantage in only one?
no
1 Discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
Contrast between absolute advantage and comparative advantage?
Absolute advantage is when a producer can produce a good using less resources than their competitor(s), whereas comparative advantage is when a producer does not hold the absolute advantage but their ratio in producing a good is smaller. Example: Brian can type 30 words per minute and iron 10 shirts per house. John can type 15 words per minute and iron 8 shirts per hour. Though Brian has the absolute advantage in ironing, John has the comparative advantage.
Explain how absolute and comparative advantages were used in your simulation?
Explain how absolute and comparative advantage were used in your simulation.
What is the ability of an entity to produce a good at an opportunity cost that is lower than that of another producer?
Comparative advantage :)
Can a person have an absolute advantage in two tasks and a comparative advantage in only one?
no
1 Discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
Contrast between absolute advantage and comparative advantage?
Absolute advantage is when a producer can produce a good using less resources than their competitor(s), whereas comparative advantage is when a producer does not hold the absolute advantage but their ratio in producing a good is smaller. Example: Brian can type 30 words per minute and iron 10 shirts per house. John can type 15 words per minute and iron 8 shirts per hour. Though Brian has the absolute advantage in ironing, John has the comparative advantage.
Difference between absolute advantage and comparative advantage?
There are many similarities and differences between Comparative Advantage and Absolute Advantage. Some simple differences between the two would be, comparative advantage uses the driving force of specialization. Another thing of comparative are, if one country has an absolute advantage or disadvantage in any kind of output, any of the other countries will maybe profit from majoring in and distributing those products. Absolute advantage has a country that economically has a benefit over another, in a precise moral, when it produces that moral at a lower cost. Also a country using the same contribution of properties a country with an absolute advantage will have superior productivity. A few modest similarities between comparative and absolute advantage are, both of these terms are two basic concepts to international trade. Additional details would be the two terms both produce a product more efficiently which gives them an absolute advantage.
Difference between absolute cost advantage theory and comparative cost advantage theory?
absolute cost advantage talks about the efficiency and cheaply a country incure in the production of goods and services against other country whiles comparative advantage talks about the opotunity cost of goods
Does Egypt have an absolute or comparative advantage?
The question is missing the economic item and, possibly, the point of reference (i.e. the country we are comparing Egypt to). A country will have a comparative or absolute advantage in some thing. In the modern world, though, Egypt is a relatively poor country which means that if it does have an advantage, it is far more likely to be comparative than absolute. However, without a particular item or point of reference, no more details can be given.
Is absolute advantage or comparative advantage more important?
Comparative advantage. Because a lower opportunity cost(comparative advantage) means a producer use the resource more efficint to produce what people want the most whereas absolute advantage only consider the number of goods or services being produced. Though a producer have a absolute advantage, but he or she may use the resource inefficiently, which will cause a disadvantge in the confront with scarcity. If we assign jobs according to comparative advantage, all individuals may benefit if the assignments are well specialized or the products are well exchanged. The resoure is limited, so only specialize each individual accroding to comparative advantage could lead to more total production.
Difference between comparative cost advantage and absolute cost advantage?
Absolute advantage and comparative advantage are two basic concepts to international trade. Under absolute advantage, one country can produce more output per unit of productive input than another. With comparative advantage, if one country has an absolute (dis)advantage in every type of output, the other might benefit from specializing in and exporting those products, if any exist.A country has an absolute advantage economically over another, in a particular good, when it can produce that good at a lower cost. Using the same input of resources a country with an absolute advantage will have greater output. Assuming this one good is the only item in the market, beneficial trade is impossible. An absolute advantage is one where trade is not mutually beneficial, as opposed to a comparative advantage where trade is mutually beneficial.A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. The theory of comparative advantage explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. What matters is not the absolute cost of production but the opportunity cost, which measures how much production of one good, is reduced to produce one more unit of the other good.
How do absolute advantage and comparative advantage have in common?
Firstly absolute advantage is where a firm or producer can produce the good using less/fewer resources than another competitor, therefore the producer has the absolute advantage and is more economically efficent. Whereas Comparative advantage is where a firm can produce a good at a lower opportunity cost than another producer. So these to economic situations are very similar and are both about which producer is most economically efficent to produce certain goods, though they have one main thing in common. Knowing who has the absolute or the comparative advantage means the producers can use specialisation to esure the least resources are produced and the best firms who can produce the good the best are producing them.
If a country has comparative advantage in the production of all goods should it trade?
Yes, since each country can individually specialize in its comparative advantage, the total income for both countries will increase. This is even true if one country has an absolute advantage in the production of all goods.
