Question

haq moving furniture and playing basketball. Use both absolute and comparative advantage to explain the following: Suppose you have one partner for a school project requiring both math and writing skills. If you are better than your partner at both math and writing, does this mean you should be responsible for both parts? Use comparative and absolute advantage to explain.Please type answer

Answer 1

PROBLEM NO2

1. According to the theory of absolute advantage a country that has an absolute advantage can produce at lower marginal costs
2. Hence a country that has an absolute advantage can sell the goods for less than the country that does not have an absolute advantage as it has an ability to produce more efficiently.Here if ,a partner is more efficient in writing than should opt for writing.
3. Theory of absolute advantage and comparative advantages are theories of international trade .According to the theory of comparative advantage each nation should produce goods for which its domestic oppurtunity costs are lower than the domestic oppurtunity costs of other nations and imports those goods which have a higher domestic oppurtunity cost compared to other nations
4. Here oppurtunity cost is the cost of best alternative foregone that is as per the given situation if comparatively one partner is better in both writing and maths but as per comparative advantage one partner who is good in both must do an activity which has low oppurtunity cost that is maths skill has low opportunity cost than writing skill than writing skills to be taken