Traditionally, discussion of division of labor includes a reference to a toy example of absolute advantage and how comparative advantage leads to gains from trade even if one party in the trade has absolute advantage in producing every good.
Toy exampleAnalytical explanation
Traditionally, discussion of division of labor includes a reference to a toy example of absolute advantage and how comparative advantage leads to gains from trade even if one party in the trade has absolute advantage in producing every good.
Toy example
Analytical explanation