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To: VRWCmember
That is only true to the extent that the goods being manufacture enjoy a comparative advantage in opportunity costs of production.

Eploiting suicidal slave labor is now called "comparative advantage in opportunity cost".

50 posted on 05/17/2016 4:54:19 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
Eploiting suicidal slave labor is now called "comparative advantage in opportunity cost".

No, comparative advantage in opportunity cost refers to the fact that factors of production are finite and if you allocate those factors to manufacturing one good, then those factors of production are not available to produce other goods. The value of the goods forgone in using resources to produce a given good is the opportunity cost of producing that good. When that opportunity cost is distorted thru externalities such as government subsidies, tariffs, excessive regulation, etc. then resources are allocated to produce goods that the market would have allocated elsewhere. The worker being paid more than the market would bear to produce the good benefits, but fewer goods overall are available to consumers at the same level of income because of the inefficient allocation of resources. An allocation of resources based on comparative advantage would result in higher quantities of more goods available for all consumers.

67 posted on 05/18/2016 8:22:06 AM PDT by VRWCmember
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