Comparative Advantage

Comparative advantage is best described through the production possibility curve. Row % of resources devoted to production of guns Number of guns % of resources devoted to production of bread Pounds of bread A 0 0 100 15 B 20 4 80 14 C 40 7 60 12 D 60 9 40 9 E 80 11 20 5 F 100 12 0 0 (a). Production Possibility Table (b) Production Possibility Curve Bread Guns The production table contains information on the trade-off between the production of guns and bread. The information is plotted on the graph (b). As we move along the …

…