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ki77a [65]
3 years ago
15

Why should countries specialize in producing goods with which they have a comparative advantage rather than an absolute advantag

e?
Business
1 answer:
Gelneren [198K]3 years ago
8 0
<span>a country might have an absolute advantage in producing a good because it has a large population this doesn't mean that the country is more efficient than other countries If a country has a comparative advantage its opportunity cost is lower so by specializing and trading a good that a country has a comparative advantage with the country can get more out of what it produces.</span>
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Consider the market for tablet (like iPads and Android tablets). Suppose the average price of an iPad goes up by $20 when a majo
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