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Shannon Gatewood
on Nov 17, 2024

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​Whenever a country has an absolute advantage in the production of a good, that implies that the country should specialize in the production of that good.

Absolute Advantage

A situation where a country, individual, or firm can produce more of a good or service with the same amount of resources compared to other entities.

Specialize

When individuals or businesses focus on producing a limited range of goods or services to increase efficiency and output quality.

  • Attain an understanding concerning the notion of absolute advantage and how it sets apart from comparative advantage.
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Lauren SamaniegoNov 17, 2024
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