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Economics Asked by a SnapAndSolve user · about 2 hours ago

CHOOSE THE TYPE OF ADVANTAGE MARCO MIGHT BE ABLE TO ACHIEVE IN THE CONTEXT OF HIS BUSINESS Which is more...

CHOOSE THE TYPE OF ADVANTAGE MARCO MIGHT BE ABLE TO ACHIEVE IN THE CONTEXT OF HIS BUSINESS
Which is more likely?
- MARCO WOULD HAVE AN ABSOLUTE ADVANTAGE BY IMPORTING GOODS INTERNATIONALLY BECAUSE HE WILL BE THE SOLE SUPPLIER OF CLOTHING.
- MARCO WOULD HAVE A COMPARATIVE ADVANTAGE BY PRODUCING HIS PRODUCT AT A LOWER PRICE, TO MAKE HIS PRODUCT MORE ATTRACTIVE TO CUSTOMERS.

Answer

Comparative Advantage: Marco would have a comparative advantage by producing his product at a lower price, to make his product more attractive to customers. This is more likely because achieving an absolute advantage by being the sole supplier is less common and more challenging in a global market.

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