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by rahimnathwani 3627 days ago
My simplified example was designed to demonstrate the difference between absolute advantage and comparative advantage, and show that there are gains from trade, even when one party has absolute advantage for all output goods.

There is no doubt that transactions costs and other friction make some potential exchanges uneconomical. So, what you say is true. But it doesn't help or hinder my explanation, and is irrelevant to the point I was trying to make.