Production Possibilities
In this case Dr. Burt has an Absolute Advantage in production of both Robots and Pizza
Also in this case Mr. Burt has a Comparative Advantage in production of Pizza Not because he is better at making Pizza, but he does have a lower Opportunity Cost per pizza |
Constant Opportunity Costs let you evaluate who wins in trade
REMEMBER- IT is possible EVERYONE WINS, it is not possible for both sides to lose.
REMEMBER- IT is possible EVERYONE WINS, it is not possible for both sides to lose.