Absolute advantage in the production

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Reference no: EM136785

Q. An individual has a comparative advantage in the production of a particular good if she can produce it at a lower opportunity cost than other individuals. An individual has an absolute advantage in the production of a good if she can produce more of that good than another individual, using comparable amounts of time, raw materials and effort.

Seller Cost
Abby $1,500
Bobby $1,200
Carlos $1,000
Dianne $750
Evalina $500

Suppose each of the five sellers can supply at most one unit of the good. Elucidate the price when market quantity supplied is exactly 3?

Reference no: EM136785

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