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Another Look at Comparative Advantage

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Comparative advantage explains why people trade and what goods they should trade. To illustrate the concept of comparative advantage, we ask: Should Martha Stewart iron her own shirts? Even if Martha Stewart has an absolute advantage in ironing shirts, her opportunity cost is simply too high! We’ll go over the concepts of absolute advantage and opportunity cost in depth using more examples, too. Ready to test your knowledge? We introduce several homework questions in this video and we’ll cover the answers in another video in this section. Microeconomics Course: http://bit.ly/20VablY Ask a question about the video: http://bit.ly/1XNc3NS Next video: http://bit.ly/1VETMRp Help us caption & translate this video! http://amara.org/v/GLJg/
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Text Comments (8)
Anita Dark (9 months ago)
His conclusion is telling that comparative advantage is wrong.
Thomas Tawadros (22 days ago)
In his conclusion all I think he is saying is that trade due to comparative advantage does not guarantee that every individual will be better off. It's just that, looking at the bigger picture, more people are better off than are worse off, and that's what makes it worth it.
Va Tu (1 year ago)
Can we say Absolute Advantage theory is totally wrong?
Richard Manahl (2 years ago)
Love these vids
Ryan Sowers (2 years ago)
Thank you so much for the education! I never knew so until now, but I love economics! Any opinion on Brexit results?
Richard Manahl (2 years ago)
Also I swear you did the O.C. calculations wrong for Mexico and the math keeps bothering me, I suggest just taking this video down so it stops confusion.
Aly Nelly (3 years ago)
I love your. Videos
jay chan (3 years ago)

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