Absolute Advantage
- Who can produce more with the same resources
- Who can produce most output with less resources
- Example: Produce 100 computers vs 20 computers (Abs Advantage: 100)
Comparative Advantage
- Who can produce with the lowest opportunity cost
Productivity
Output
Examples:- Ton/Acre
- Miles/Gal
- Word/Min
- Apples/Tree
- Computers Produced/Hour
Input
Examples:
- Number of Hours to do a job
- Number of Gallons of Paint to Paint a house
- Number of Acres to feed a horse
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