Comparative Advantage Calculator

Analyze specialization with opportunity costs compare unit labor requirements view production possibility frontiers and identify who gains from trade add your own countries and goods see instant results export tables as CSV and print a PDF summary designed for teaching policy analysis and clear decision support with a minimal white layout that users love

Inputs
Two goods Two countries
Enter unit labor requirements (hours per unit). Lower is more productive.
Good X (hours/unit) Good Y (hours/unit) Total labor endowment (hours)
Country A
Country B
Results
Metric Country A Country B
PPF Chart
PPF constructed assuming linear technology with fixed unit labor requirements and full employment of given labor endowment.
Formula Used

Unit labor requirement (ULR): ai(g) = hours needed in country i to produce one unit of good g.

Opportunity cost: Cost of one unit of Good X in terms of Good Y for country i is ai(g1) / ai(g2). Conversely, cost of Good Y in Good X is ai(g2) / ai(g1).

Comparative advantage: Country with the lower opportunity cost in a good has comparative advantage in that good.

Absolute advantage: Country with the lower ULR in a good is more productive in that good.

PPF of country i: With labor endowment Li, intercepts are Xmax = Li / ai(g1) and Ymax = Li / ai(g2). The PPF is the straight line joining those intercepts.

Example Data Table
Country Good X ULR (hours/unit) Good Y ULR (hours/unit) Labor endowment (hours)
Country A1020100
Country B126100

Tip: Click Load Example to use these values. Then press Calculate to compute opportunity costs, advantages, and visualize PPFs.

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Cobb-Douglas Production FunctionFisher EquationGDPGDP Growth RateInterest Rate ParityMarginal Propensity to Consume (MPC)Money MultiplierNet Stable Funding Ratio (NSFR)Purchasing Power Parity (PPP)Price Elasticity of Supply

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.