petergarylee

His concept is wrong because $ is already the unify measuring unit, which has included all the cost per unit. From the above data, we can find out the comparative advantage(HK for good X) but not absolute advantage because we dont know how much resources does HK or Aust has, thats the only reason. E.g. HK: GoodX($5), GoodY($10) , Aus: GoodX($8), GoodY($8),  given that HK has $100 and Aus has $40, under this condition, we can conclude that HK has an absolute adv in GoodX where HK can produce 20 but Aus can only produce 5.