The doubling of will neither change the absolute advantage nor comparative advantage.
What is absolute advantage?
- Absolute advantage is the capacity of an individual, business, area, or nation to produce more of an item or service per unit of time using the same amount of inputs than its rivals, or to produce the same amount of a commodity or service per unit of time using less inputs.
- Absolute advantage can be attained by employing fewer inputs or a more effective process to produce the good or service at a lower absolute cost per unit.
Comparative advantage, which occurs when a producer has a lower opportunity cost to provide a good or service than another producer, can be contrasted with absolute advantage.
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