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I'm not sure the simplifying assumptions made in macro models have much bearing on a strictly micro problem.
by Symmetry 11y ago
I'm not sure the simplifying assumptions made in macro models have much bearing on a strictly micro problem.
- Retric 11y agoFree trade is by dentition macro economic problem. If your admitting those models ignore marginal utility well QED.
- Symmetry 11y agoI can't speak to the definition but I think I've always seen comparative advantage covered in micro textbooks rather than macro textbooks.
- Retric 11y agoIt shows up in both. EX: Norway could grow bananas using greenhouses at great expense, but Norway is likely better off importing them in exchange for something else. Free trade only really applies between countries, so that's a macro economic issue.