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Michael and Angelo are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Does either one have a comparative advantage?
Assumptions
Premises or conditions accepted as true without proof, used as a foundation for reasoning or calculations.
NPV
Net Present Value, a financial metric used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Market Size
An estimate of the total demand or volume of sales for a particular product or service within a given market or geographic area.
R&D Costs
Expenses associated with the research and development activities of a company, aiming at new product development or improvement of existing products and processes.
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