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Explain the difference between absolute advantage/comparative advantage. Use two countries two commodities scenario/provide concrete (example coffee versus Airplanes) or anything of your choice. Absolute advantage
Explain the difference between absolute advantage/comparative advantage. Use two countries two commodities scenario/provide concrete (example coffee versus Airplanes) or anything of your choice.
- Absolute advantage is achieved when one producer is able to produce a competitive product using fewer resources, or the same resources in less time.
- Comparative advantage considers the opportunity cost when assessing the viability of a product, accounting for alternative products.
***This is a research question. The question is complete. Please pass on to a tutor that has experience with researching Macroeconomics. Thank you.***
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