Question

The concept of comparative advantage makes the assumption that everyone will be better off

Answer 1

The concept of comparative advantage makes the assumption that everyone will be better off producing enough of a good to consume domestically with enough to export. The main idea of comparative advantage is that it is quite profitable to produce goods and services at a lower opportunity cost, and it is not necessary to produce it in a great volume. This concept is totally opposite to the absolute advantage theory.

Answer 2

The concept of comparative advantage makes the assumption that everyone will be better off producing the products they produce relatively best.