Distinguish between comparative advantage and absolute advantage
What will be an ideal response?
A person has a comparative advantage in producing a good when he or she has the lowest opportunity cost of producing it. Comparative advantage is based on the output forgone. A person has an absolute advantage in production when he or she uses the least amount of time or resources to produce one unit of that particular good or service. Absolute advantage is a measure of productivity in using inputs.
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Answer the following statement true (T) or false (F)
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a. perfect competition. b. monopolistic competition. c. monopoly. d. oligopoly.
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