What Is Comparative Advantage?
What you give up has a name: opportunity cost (Boudreaux, Concise Encyclopedia of Economics).
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1.What is comparative advantage?
What you give up has a name: opportunity cost (Boudreaux, Concise Encyclopedia of Economics).
2.What is opportunity cost?
A fast typist's lost hour on accounts is her opportunity cost; it depends on the next-best use of her time.
3.Working alone with 12 hours, what do Marge and Leo make together?
Marge ends with 6 beds and 3 cakes, Leo with 2 beds and 2 cakes (worked example).
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Sources (4)
- Boudreaux, D. J.: Comparative Advantage (Concise Encyclopedia of Economics, Library of Economics and Liberty)
- Ricardo, D.: On the Principles of Political Economy and Taxation, Ch. 7 "On Foreign Trade" (Library of Economics and Liberty, 3. Aufl. 1821)
- Comparative advantage (Wikipedia)
- Eigene Rechnung: synthetisches Beispiel Garten
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