Example of Comparative Advantage
Looking strictly at the ability to make more of both, it may seem that Country B possesses an absolute advantage over both as it can produce more. BUT it is looking at Opportunity Cost that helps solve our dilemma.
Looking strictly at the ability to make more of both, it may seem that Country B possesses an absolute advantage over both as it can produce more. BUT it is looking at Opportunity Cost that helps solve our dilemma.