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comparative advantage : The Revealed comparative advantage is a macroeconomic concept for calculating a relative advantage or disadvantage of a certain country in a certain technological field. It most commonly refers to an index introduced by Balassa (1965): RCA = (E ij / E it) / (E nj / E nt) with Other definitions.. More from Wikipedia
comparative advantage : In economics, the law of comparative advantage is the idea that a nation is better off when it produces goods and services for which it has a comparative advantage... More from Wikipedia
Comparative Morphology
Comparative morphology involves the study of the external features of organisms. There are two types of evidences that comparative morphology reveals. They a..
Comparative Morphology
Comparative morphology involves the study of the external features of organisms. There are three types of evidences that comparative morphology reveals. They ar..
based on the textbook "Microeconomics for MBAs"
This is a video summary explaining HG #14, a graph representing absolute and comparative advantage.
Question : I arrived late to a class and missed most of the explanation. I'm working on this example, but I'm not sure I have it: Suppose the following is true for US and Canada (both produce only two goods):
Hours needed to produce one unit of cheese US= 20 Can=10
Hours needed to produce one unit of wine US=10 Can=15
Which country has absolute advantage in cheese production?
Which country has the absolute advantage in wine production?
Comparative advantage in cheese..
Answer : You are doing fine. Te key is the US can make one cheese for every 2 Canadian cheeses and the US can make three wine for every 2 Canadian Wine. Everything else being equal the US should make only wine and Canada should make only cheese and then trade since the absolute advantage takes precedence here. If the US made both better than Canada then Canada should concentrate on what it makes better and trade for the other... More from Yahoo Answers
Answer : You are doing fine. Te key is the US can make one cheese for every 2 Canadian cheeses and the US can make three wine for every 2 Canadian Wine. Everything else being equal the US should make only wine and Canada should make only cheese and then trade since the absolute advantage takes precedence here. If the US made both better than Canada then Canada should concentrate on what it makes better and trade for the other... More from Yahoo Answers
Question : Example: John and Rob are stranded on a deserted island. To feed themselves each day they can either catch fish or pick fruit. John can pick 60 fruit or catch 20 fish. Rob can pick 100 fruit or 150 fish. Who has the comparative advantage in fruit picking; who has the comparative advantage in fishing? Who has the absolute advantage in fruit picking; who has the absolute advantage in fishing?
Answer : Rob has absolute advantage in both picking fruit and catching fish because he picks 100 fruits which is higher than what John can pick(60) and Rob can catch 150 fish which is more than what John can catch(20). But John has a comparative advantage in Fruit picking. He needs to give up just 1 fish to pluck 3 fruits. However, if Rob foregoes catching 1 fish and use the time saved to lpuck fruits, he would not be able to pluck even 1 fruit. On the otherhand Rob has comparative advantage in catching fish. He can catch 15 fish by foregoing plucking 10 fruits. As against this John would need to give up plucking as many as 45 fruits to catch 15 fish. It is because of this, ROB will concentrate on catching fish while John on plucking flowers and tarde among themselves and benefit. This aspect however is beyond the scope of the question. Sorry... More from Yahoo Answers
Answer : Rob has absolute advantage in both picking fruit and catching fish because he picks 100 fruits which is higher than what John can pick(60) and Rob can catch 150 fish which is more than what John can catch(20). But John has a comparative advantage in Fruit picking. He needs to give up just 1 fish to pluck 3 fruits. However, if Rob foregoes catching 1 fish and use the time saved to lpuck fruits, he would not be able to pluck even 1 fruit. On the otherhand Rob has comparative advantage in catching fish. He can catch 15 fish by foregoing plucking 10 fruits. As against this John would need to give up plucking as many as 45 fruits to catch 15 fish. It is because of this, ROB will concentrate on catching fish while John on plucking flowers and tarde among themselves and benefit. This aspect however is beyond the scope of the question. Sorry... More from Yahoo Answers