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Old 01-27-2010, 07:27 AM
Xanthia Alysha Xanthia Alysha is offline
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comparative advantage is an ability to produce a product at a lower opportunity cost than other countries, regions, firms or people...

assuming again that two countries can produce two similar goods, capital goods... then the one having less opportunity cost would be said to be comparatively advanatged...

focusing on comparative adanvatge leads to absolute advantage for a country.
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