Assignment # F1

 Comparative and Absolute advantage. 

Absolute Advantage is the ability with which an increased number of goods and
services can be produced and that too at a better quality as compared to
competitors whereas Comparative Advantage signifies the ability to manufacture
goods or services at a relatively lower opportunity cost. In International trade,
absolute advantage and comparative advantage are widely used terms. These
advantages influence the decisions taken by the countries to devout their natural
resources and produce specific goods.

Opportunity Cost.
Opportunity cost is the value of what you lose when you are choosing between
two or more options. If you decide, of what you feel that that choice that you
have made will be better results for you, regardless of what you lose by making it.
And as an investor, opportunity cost means that your investment choices will
always have immediate and future losses or gains. While opportunity cost is not
an exact measure, one way to quantify this cost might be to estimate the future
value that you opted not to receive and compare it with the value of the choice
you made instead.