Example of Comparative Advantage
• Suppose that Country A and Country B each produces both wheat and wine.
country Wheat(tons per day) wine(bottels per day)
country A 100 50
country B 120 60
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 tha... https://www.fbsedu.in/static/js/main.59b6eaac.js:2:125062
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