competitve/ absolute advantage

To find opportunity cost, you compare how much of one good must be given up to make more of another.

You do this by dividing the other good’s quantity by the

one you’re finding the cost of.

Lower opportunity cost = comparative advantage =

should specialize in that good.

Mexico has lower opportunity cost in what?

computers (compare across for computers)

red bubble?

the smallest fraction

you make the fractions____________ to find opportunity cost.

across the same row

A country has an _____________ in producing a good if it can make more of that good using the same amount of resources (or make the same amount using fewer resources).

absolute advantage