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The differences of productivity are influencing the rising of absolute advantage. On the other hand, a person who has more capital, more skilled or a better technology has an absolute advantage. (ECONOMIC 7th ed., 2005, Michael Parkin, pg 43)
David and Ivan each are given the same resources to produce candies and chocolates. David can produce 60 candies or 30 chocolates per day with the resources given. However, Ivan can produce 30 candies or 20 chocolates per day by using the same amount of resources. Thus, David is said to be having an absolute advantage as he can produce more than Ivan with each given the same amount of resources...
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