Comparative advantage is a simple but not a trivial concept.docx - Comparative advantage is a simple but not a trivial concept Adam Smith is called the

Comparative advantage is a simple but not a trivial concept.docx

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Comparative advantage is a simple but not a trivial concept. Adam Smith is called the father of economics, was he the one who came up with the idea? If not then who? Comparative advantage is an economic law referring to the ability of any given economic factor to produce goods and services at a lower opportunity cost than other economic factors.[inv18] Adam Smith is called the father of economics, but he was not the one who came up with the idea. An English political economist David Ricardo founded it in 1817. According to comparative advantage theory, if any person or institution can perform any task in less time than the other person or institution then they have absolute advantage than that of other. For instance: if Ram can cycle 5km in 10minutes and Shyam can cycle in 5minutes then Shyam has comparative advantage than that of Ram. Also, if a country or company is comparatively more capable in producing definite goods than they have comparative advantage than that of another country or company. The ability of
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