Absolute advantage means that you can produce more of something than someone else. Comparative advantage means that you can produce something more cheaply than someone else. For instance, say country X could produce up to 50,000 cars for $1,000 each, and country Y could produce up to 20,000 cars for $500 each. Then country X has the absolute advantage because it can produce more cars, but county Y has the comparative advantage because it can produce a car for less cost. Countries often specialize in a good in which they have a comparative advantage.
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