MKT-2.A—a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and…

a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.

• Absolute advantage describes a situation in which an individual, business, or country can produce more of a good or service than any other producer with the same quantity of resources.
• Comparative advantage describes a situation in which an individual, business, or country can produce a good or service at a lower opportunity cost than another producer.
• Enduring understanding MKT-2: The consequences of scarcity can be mitigated through specialization in production and by exchange.