Author Question: What gives a person a comparative advantage? What will be an ideal ... (Read 40 times)

pragya sharda · **on:** Jun 29, 2018

What gives a person a comparative advantage?

What will be an ideal response?

Question 2

Sketch a PPF for video entertainment and other goods and services before broadband.

What will be an ideal response?

miss.ashley · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A person has a comparative advantage in an activity if that person can perform the activity at a lower opportunity cost than anyone else, If the person gives up the least amount of other goods and services to produce a particular good or service, the person has the lowest opportunity cost of producing that good or service.

Answer to Question 2

As illustrated in Figure 3.5 by the production possibilities frontier labeled Initial PPF, the PPF has video entertainment on one axis and other goods and services on the other. The PPF is bowed outward as a conventional PPF.