Question

What is the difference between comparative advantage and absolute advantage?

Answers:
A country has a comparative advantage if they have a lower opportunity cost of production whereas they have an absolute advantage if they can produce more than the other country
A country has a comparative advantage if they have a lower monetary cost of production whereas they have an absolute advantage if they can produce more than the other country
A country has an absolute advantage if they have a lower monetary cost of production whereas they have a comparative advantage if they can produce more than the other country

Answer 1

Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.

Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.

Step-by-step explanation: