Ryan Fitts_BU204-10-_Unit_2_Homework

Ryan Fitts_BU204-10-_Unit_2_Homework - Ryan Fitts Course...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Ryan Fitts Unit: 2 Nov 20, 2010 Key Terms – Definitions Production Possibility Frontier: “A production possibility frontier (PPF) is a curve or a boundary which shows the combinations of two or more goods and services that can be produced whilst using all of the available factor resources efficiently.” (Geoff Riley, Sept 2006) To me, production possibility frontier is where you can produce X and Y but you will have to give up portions of X to gain more of Y and vise versa. Comparative Advantage: “To illustrate the concept of comparative advantage requires at least two goods and at least two places where each good could be produced with scarce resources in each place.”( Mike Moffatt,) To me, a comparative advantage is when a corporation or business has a product or service that is seen by the target market as better than those of the competitors. Absolute Advantage :
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
“the ability of an economic unit (a country, for example) to produce more of any given goods at a lower cost of production than another economic
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Ryan Fitts_BU204-10-_Unit_2_Homework - Ryan Fitts Course...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online