Market size is central in other cases as well. It is what permits specialization of labor. Comparative advantage is a mechanism for permitting this development even when one of the producers has an absolute advantage, such as Yuma in this example. However, the most important factor in specialization is sheer market size. This is why I’m excited to consider this frame further in the future.
Market size is central in other cases as well. It is what permits specialization of labor. Comparative advantage is a mechanism for permitting this development even when one of the producers has an absolute advantage, such as Yuma in this example. However, the most important factor in specialization is sheer market size. This is why I’m excited to consider this frame further in the future.