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Lecture 2

ECO101H1 Lecture Notes - Lecture 2: Absolute Advantage, Comparative Advantage, Opportunity Cost


Department
Economics
Course Code
ECO101H1
Professor
James Pesando
Lecture
2

This preview shows pages 1-2. to view the full 6 pages of the document.
[ECO100 ECONOMICS]
COMPARATIVE ADVANTAGE AND THE GAINS FROM TRADE
 
Producon Possibilies Froner (PPF)
   
 !"#$"
% &'
PRODUCTION POSSIBILITIES FRONTIER (Constant Opportunity Cost)
($
 
 !"#
% &'
Analysis:
 )$*('+$
&'*+$,-.,('
 )$*+$('
&'*(',.-,.+$
Note:
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!*$324'$$11
'*$11)$256)27$217"8
9'/'0$+&519:9!4;<9=;9!9(<*$'/'0
*$)'$
Important Insight:
+$6$*2 $ )' )
'
(' +$
 
> 
7 
 %
 
 .

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

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