Professional Documents
Culture Documents
Comparative and Absolute Advantage
Comparative and Absolute Advantage
Burger Fries
Mc Donald’s 80 90
Both Jollibee and Mc Donald’s prepare burger and fries in their store. In one week Jollibee can
prepare 150 burgers or 100 fries while the Mc Donald’s can prepare 80 burgers and 90 fries.
Absolute Advantage
Jollibee can prepare more burgers or fries in one week than Mc Donald’s so that it has the
Absolute advantage.
Comparative Advantage
For Fries Mc Donald’s has the Comparative Advantage because it has the lowest
opportunity cost.
For Burgers Jollibee has the Comparative Advantage because it has the lowest
opportunity cost.