Comparative and Absolute Advantage -

Comparative and Absolute Advantage - 

• Absolute Advantage
• Who can produce more with the same resources?
• Who can produce the same output with less resources?
• ex. Papa Johns producing 20 pizzas while Ronald McDonalds produces 4

• Comparative Advantage
• Who can produce with the lowest opportunity cost?
• One individual or one nation

• Input v. Output
• Input 
• ex. numbers of hrs to do a job, number of gallons of paint, number of acres to feed a horse
• Output
• ex. miles per gallon, tons per acre, words per minute, apples per tree, computers produced per hour