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If Country A has a comparative advantage in the production of oil relative to Country B, then

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If Country A has a comparative advantage in the production of oil relative to Country B, then

If Country A has a comparative advantage in the production of oil relative to Country B, then

▸ the opportunity cost of producing oil is higher in Country A than in Country B.

▸ the opportunity cost of producing oil is lower in Country A than in Country B.

▸ Country A also has an absolute advantage in producing some good other than oil.

▸ Country A also has an absolute advantage in producing oil.

▸ Country A when compared to Country B must have an absolute advantage in producing some good other than oil.

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Microeconomics

Edition: 17^th

Author: Ragan

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