Explain David Ricardo’s theory of comparative advantage
.Explain David Ricardo’s theory of comparative advantage. How does comparative advantage differ from absolute advantage? What is the relationship between comparative advantage and gains from trade? 500 words
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Ricardo’s theory of comparative advantage is an economic law that refers to the ability of an entity to produce at an opportunity cost that is much lower than other economic competitors. A country or an entity that is able to produce either goods or services at a relatively lower economic opportunity cost have the advantage of offering their products in the market at a much…
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