So there are two reasons why you could be employed. Comparative advantage and competitive advantage. Let me explain. In international trade, there is a concept called “law of comparative advantage“. Let me explain with the classical (and simple) example. Robinson Crusoe is marooned on an island with Friday. Now, let us assume there are two…
Theory of comparative advantage and chutiya kaam
Suppose you and me together have to do two tasks A and B. We need to decide who does what (let’s assume that we need to pick one task each). Now I’m a stud and you are a chutiya so I’m better than you at both A and B. So how do we split? It…