Econ Notes Ch 3 - the ability to produce a good at a lower...

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CHAPTER 3: INTERDEPENDENCE AND THE GAINS FROM TRADE Absolute advantage : the ability to produce a good using fewer inputs than another producer Comparative advantage:
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Unformatted text preview: the ability to produce a good at a lower opportunity cost than another producer (the farmer has a comparative advantage growing potatoes over the rancher)...
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