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They have an absolute advantage in making adult pleasures such as dildos and vibrators.
Who knew the Chinese were such a horny nation.
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∙ 13y ago
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What is absolute cost advantage?
its really simple. an absolute cost advantage is that you are making a profit of the cost of what you are producing . In brief terms it is basically finding out methods and using them to minimise the cost of producing a good,so whatever the business manages to save through those methods are ABSOLUTE COST ADVANTAGE
When might a country specialize in producing a particular good?
When a country has an absolute advantage in production of that good it may specialize in producing that good.
What is the difference between theory of absolute advantage and a theory of comparative advantage?
The theory of absolute advantage states that a country should produce goods that it can produce more efficiently than other countries. On the other hand, the theory of comparative advantage argues that a country should specialize in producing goods that it can produce at a lower opportunity cost compared to other countries, even if it does not have an absolute advantage in that good.
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.
What is the Assumption of absolute cost advantage?
what are the assumptions of the absolute advantage cost?
Differences between absulate advantage and comparetive advantage?
According to the definition I found, comparative advantage means being able to produce a product at a lower cost than others and absolute advantage means being the best at something or producing the best product.
Examples of absolute and comparative advantage?
Absolute advantage: Vietnam can produce 1000 million tons of rice while South Korea can produce 800 million tons of rice => Vietnam has absolute advantage (since it can produce more than Korea) Comparative advantage: Same example: Vietnam and Korea. To produce 1 more tonnes of rice, Vietnam has to give up producing 3 cars. However, to produce 1 more tonnes of rice, South Korea only have to give up producing 1 cars. => There is a lower opportuniy cost for Korea to produce rice. i.e. South Korea has the comparative advantage.
What is Adam Smith's Absolute Advantage Theory?
The theory of "Absolute Advantage" is defined by the ability of a nation, business entity or persons to produce goods and services at much lower prices compared to that of their competitors or other entities. Any entity can also be considered to have absolute advantage in more than one product or service.
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.
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.
What is comparative advantage and absolute advantage?
absolute advantage is when a country,company, indivdual or region can produce a good better and at a cheaper cost than any other competitor.
What is the absolute advantage of Pakistan?
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