If, instead, his secretary does the typing, the secretary gives up an alternative secretarial jobor perhaps a much lower salary playing basketball. The secretary, not Michael Jordan, has the comparative advantage at typing!
The trick to understanding comparative advantage is in the phrase "lower cost." What it costs someone to produce something is the opportunity costthe value of what is given up.
Since he's better at typing than you, can't he type more cheaply than you?
That is, if someone has an absolute advantage in something, doesn't he automatically have a comparative advantage in it? If Jordan takes time out from shooting hoops to do all his own typing, he sacrifices the large income he earns from entertaining fans of basketball.
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else.
Having a comparative advantage is not the same as being the best at something. Someone who is the best at doing something is said to have an absolute advantage.
My North staffer Evan Perry sat down with Tester, Lagina, and their Heritage co-worker, Shari Chouinard, to talk conspiracy theories, coconuts, and the mystery of Row 7. Lagina: Well, my older brother, Rick, read an article in—and the article was about Oak Island.
Over the course of his career, he attempted more than 75 ramp-to-ramp motorcycle jumps; in 1974, he failed an attempted canyon jump across Snake River Canyon in the Skycycle X-2, a steam-powered rocket.Sometime later, the , so he showed it to Rick and me. The show overlooks much of the story regarding how you came to own a stake in the island.What sort of complications were there regarding purchasing the property, and how much red tape did you have to cut through to begin excavation? I picked up a magazine called , which had a bunch of islands for sale in the back, and Oak Island was for sale. When I called about the island, it turned out that it wasn’t for sale. The agent said that he had a listing from David Tobias—David owned most of the island with his partner Dan Blankenship—but he didn’t.Knievel left Butte High School after his sophomore year and got a job in the copper mines as a diamond drill operator with the Anaconda Mining Company, but he preferred motorbiking to what he called "unimportant stuff".The incident left the city without electricity for several hours.