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Comparative and Absolute Advantage

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Israel can produce 100 computers or 50 tanks

Canada can produce 40 computers or 15 tanks

Which country has the absolute advantage in the production of tanks? Why is it this country? Which country has the comparative advantage in the production of computers? How did you determine your answer?

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The solution goes into a fair amount of detail pertaining to the question being asked. The explanation is very good and yet concise and to the point. It is also very easy to follow along. Overall, a very good answer to the question being asked.

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Principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of ...

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