# Comparative advantage model * In a given time A can produce 20 of X or 1 of Y * B can produce 2 of X or 1 of Y * It makes sense for B to work only on Y and A to work only on X * THIS IS TRUE EVEN IF A is better at *both* X and Y * Markets are a way of giving ### Examples * [[The economics of scientific collaboration]] ### Related * [[Smithian Growth vs Schumpetarian Growth]]