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

Comment les droits de propriété affectent les externalités et préviennent les défaillances du marché

Élasticité-prix de la demande : impact sur le comportement des consommateurs et les revenus

Conclusion