How to Do Comparative Advantage?

Identify the goods, services, or tasks to compare

Determine the opportunity cost of producing each one

Calculate how much of one good must be given up to produce more of another

Compare opportunity costs across producers, countries, or workers

Find the producer with the lower opportunity cost for each good

Assign each producer to the good they can produce at the lowest opportunity cost

Specialize in the good with the comparative advantage

Trade for the other good if beneficial

Reevaluate comparative advantage when costs, technology, or resources change