Discuss which is the commodity of comparative advantage


On one set axes, outline a community indifference curve tangent to the fairly flat section of a concave production frontier. On a second set of axes, outline another community indifference curve tangent to the fairly steep portion of another concave production frontier.

1. Illustrate in the line showing the equilibrium-relative commodity price in isolation in each nation.

2. Discuss which is the commodity of comparative advantage for each nation?

3. Under what condition would there be no such thing as comparative advantage or disadvantage among the two nations?

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Macroeconomics: Discuss which is the commodity of comparative advantage
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