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Chapter 3 - *Based on COMPARATIVE not absolute advantage...

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Chapter 3 Study guide Chapter 3Econ Notes Absolute advantage: who produces more Comparative advantage: who has the lower opportunity cost *opportunity cost= opposite over the good and lower no. = lower opportunity costs Results in specialization and trade
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Unformatted text preview: *Based on COMPARATIVE not absolute advantage Trade allows both side to have more of both goods, leaving them both better off. * The price must lie between the 2 opportunity costs...
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