The essence of this law can be illustrated with a simple example. Imagine you are a skilled cabinet maker and a talented painter. It takes you a day to build a cabinet or a day to paint a picture. In the local economy, paintings sell for $400 and cabinets for $350. Your neighbor has similar skills, but it takes him a day and a half to build a cabinet and three days to complete a painting. You have an absolute advantage over your neighbor in both areas, so you should try to outperform him in every way, right? Faux.

Histoires connexes

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Conclusion