Andrea
Tue Jan 07 2025
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7 answers
1144
What is Haberler's theory of opportunity cost?
Haberler's theory of opportunity cost explains the principle of comparative advantage, sometimes referred to as the principle of comparative cost. It suggests that when a country increases the production of one good, it must decrease the production of another good. The theory focuses on the value of the next best alternative that is forfeited when a choice is made.
