Comparative Advantage Calculator
Comparative Advantage Calculator
| Component | Description |
|---|---|
| Output of Good A | The total output of Good A produced by a country or entity. |
| Output of Good B | The total output of Good B produced by a country or entity. |
| Opportunity Cost of Good A | The amount of Good B that must be forgone to produce one unit of Good A. |
| Opportunity Cost of Good B | The amount of Good A that must be forgone to produce one unit of Good B. |
| Comparative Advantage | The ability of a country or entity to produce a good at a lower opportunity cost compared to others. |
| Purpose | Used to determine which goods a country or entity should specialize in to maximize economic efficiency and trade benefits. |