jconeab

so i just had my first test in my micro econ class and i realized i don't understand some things that dealt with comparative advantages. i asked the teacher but they didn't explain it to me. anyone have any knowledge?

DakarM

is there a question in there somewhere?

Red X

Its very simple really:

Say theres a country that sucks at producing everything (Country A) and theres a country that is great at producing everything (Country B). Now say that B is slightly better at producing a product X. Even though B may be better at producing a product Y than A, it is better for B to produce X and A to produce Y. The reason is, B will be able to focus solely on making the product they are best at, and A can produce Y such that B doesn't have to. Its really a matter of opportunity cost.

Notice: I used countries for simplicity but this can apply to anything.

lil_1_2002

macro>mincro h:

jclau00

google is your friend

shabacash

i remeber taking that class and passing it; however the "optional" final for the class was a true or false test which more than 50% of the class failed in.

Dweezel

Red X nailed it, by working together both companies are more efficient than working separately.

canada

Taking that class right now... hate it