Documentos de Académico
Documentos de Profesional
Documentos de Cultura
• Comparative Advantage
– When one country can produce a good at a
lower opportunity cost (i.e. it has to forgo
less of the other good in order to produce
it).
Principle of Absolute
Advantage
Country Rice Corn Opportunity cost Opportunity cost
for 1 unit of Rice for 1 unit of Corn
A 100 50 0.5 unit Corn 2.0 unit Rice
A 150 100
B 60 80
• It is computed as an index.