Ryan Fitts_BU204-10-_Unit_2_Homework

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

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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 :
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“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
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This note was uploaded on 05/26/2011 for the course BUS 204 taught by Professor Enricodigiammarinojr during the Fall '10 term at Kaplan University.

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

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