In the illustration at the right you can see that with one hour of time Abba has the absolute advantage in both fish and figs because it can produce more of both products in one hour than Zarin can produce.
- How many fish can Abba produce in one hour?
- How many fish can Zarin produce in one hour?
- How many figs can Abba produce in one hour?
- How many figs can Zarin produce in one hour?
- Who has the comparative advantage in fish? Explain.
- Who has the comparative advantage in figs? Explain.
- Should the two nations trade or not? Explain.
Comparative and Absolute Advantage video