The table indicated the advantage in producing the two. However, in producing the two based on the information provided, the company's comparative advantage is given below.
- has the comparative advantage in making violins
Comparative advantage
Comparative advantage is an economy's capacity to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
Therefore, the product with a comparative advantage is in the sentence given above. That is, comparative advantage is in making violin.
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