Asked by
Allie Benham
on Nov 17, 2024Verified
When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.
Comparative Advantage
The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.
Two Goods
A scenario in economics discussing the trade-off or choice between two different products or commodities.
- Show proficiency in absolute and comparative advantage in the realm of both domestic and international trade.
Verified Answer
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Learning Objectives
- Show proficiency in absolute and comparative advantage in the realm of both domestic and international trade.