Question

"distinguish between an absolute advantage and a comparative advantage. cite an example of a country that has an absolute advantage and one with a comparative advantage.

Answer 1

Answer:

Distinguish between an absolute advantage and a comparative advantage is discussed below.

Explanation:

Absolute advantage and a comparative advantage

• Absolute advantage concentrates on the marginal cost of reproduction of an asset whereas comparative advantage characteristically concentrates on the opportunity cost of production.
• Trading judgments based on comparative advantage between nations are forever respectively advantageous.