Author: fin22

industries that were once competitive in a particular area might lose their advantage, and countries may need to adapt by shifting production.... Read More

Perfect Competition: The model assumes perfect competition and does not take into account monopolies or oligopolies where firms have price and output control. No Transaction Costs: In the real world,...... Read More

for which country B can make only 50 tons, then it means that there is an absolute advantage of producing wheat for country A. Absolute advantage emphasizes the broader productivity...... Read More

Country A has a comparative advantage in producing wheat because it has to give up less wine to produce wheat compared to Country B. Country B is comparative advantageous in...... Read More

Both countries have the same opportunity costs, but the decision comes down to specialization based on the good they can produce more efficiently relative to the other. Country A has...... Read More

their level of living standards. Growth in and development of economics can also be achieved due to the principle of comparative advantage; because this principle supports countries that promote efficiency...... Read More