industries that were once competitive in a particular area might lose their advantage, and countries may need to adapt by shifting production.... Read More
Author: fin22
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