To find:
Concept introduction:
Absolute advantage: The absolute advantage is defined as the ability of an individual, country or a group to a produce a commodity at a low cost than the others. If we take an example it would be very easy to produce apples in the European countries because it has got the climate advantage, countries like India cannot produce apples at a low cost. The absolute advantage enjoyed by an individual or country may be due to their weather, technology or something else many factors can contribute to this.
Comparative Advantage: The term comparative advantage is associated with the famous economist David Ricardo. The comparative advantage occurs when a country or an individual produces a good relatively cheaper than the other countries. This means that the
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Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
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