Absolute advantage
Comparative advantage
Step-by-step calculation
Example where trade works
Country A has steeper PPC (higher OC of cloth) → comparative advantage in wheat
The key rule
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Gains from trade
Worked example
Terms of trade
Why the range works
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Output vs. input problems
Output problem (more common)
Input problem
Comparative advantage with individuals
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AP exam tips for 1.3
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Common mistakes
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