Absolute Advantage Graph
The absolute advantage is the ability to produce a particular commodity especially at a lower marginal cost compared to its competitor. Absolute Protective Systems Inc. Comparative Advantage Absolute Irrigation 732 942-1973. . PPF graph shown in Figure 1. One worker in Canada can produce more lumber 40 tons versus 30 tons so Canada has the absolute advantage in lumber. Differences Between Absolute and Comparative Advantage. Recall from Choice in a World of Scarcity that the production possibilities frontier shows the maximum amount. Production possibility frontier graph every increase in oil production of one barrel implies. In International trade absolute advantage and comparative. In contrast Comparative Advantage signifies the ability to manufacture goods or services at a relatively lower opportunity cost. At the same time comparative advantage enables a nation in producing a specific commodity at a low...