What is the difference between comparative advantage and absolute advantage? Comparative advantage measures opportunity cost and

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2 years ago

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What is the difference between comparative advantage and absolute advantage? Comparative advantage measures opportunity cost and

absolute advantage measures efficiency. Absolute advantage measures opportunity cost and comparative advantage measures production cost. Comparative advantage measures sale price and absolute advantage measures production cost. Absolute advantage measures sale price and absolute advantage measures production cost.

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2 answers:

Burka [1] · Answer 1 · 2023-08-30T00:25:23+03:00

The difference between comparative advantage and absolute advantage is that: A. Comparative advantage measures opportunity cost and absolute advantage measures efficiency.

<h3>What is a comparative advantage?</h3>

A comparative advantage can be defined as the ability of a business firm or country to produce goods and services at a lower opportunity cost than their rivals (competitors) or trade partners.

<h3>What is an opportunity cost?</h3>

An opportunity cost is also referred to as alternative forgone and it can be defined as the value, profit or benefits that are given up and forfeited by an individual or business firm, in order to choose or acquire something that is deemed most significant at a particular point in time.

In this context, we can infer and logically deduce that the difference between comparative advantage and absolute advantage is that comparative advantage measures opportunity cost and absolute advantage measures efficiency.

Read more on comparative advantage here: brainly.com/question/12291750

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nignag [31] · Answer 2 · 2023-08-30T02:38:23+03:00

nignag [31]2 years ago

3 0

Answer:

A. Comparative advantage measures opportunity costs and absolute advantage measures efficiency.

Explanation:

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