Facebook 2016-11-24 Comparative advantage means that if there are X who can make 10 A and 9 B with one unit of resources and Y who can make 1 A and 2 B, rather than X making 10 A and 9 B with 2 resources, X would make 20 A and give 10 to Y, and Y would use 5 of the 10 resources saved to make 10 B and return them to X. Mr. Y uses 5 of the 10 resources saved to make 10 of B and returns it to Mr. X. This assumes that the transaction cost is zero. … 3 comments1 share 1 Yuichiro Tsuchiya Nice! See other reactions Comment. Share Comment Nishio Hirokazu Nishio Hirokazu This transaction will not pay off if it costs 10 to transport 10 units of A and B each. Manage Nice! See other reactions - Reply - 2 years ago Nishio Hirokazu Nishio Hirokazu But it is expensive for people with unarticulated needs to articulate them, it is expensive to share ideas that are not fully articulated and to divide labor, and it is expensive to communicate new things created by engineers to non-technical people. Manage Nice! See other reactions - Reply - 2 years ago Nishio Hirokazu Nishio Hirokazu The reason why people are attracted to full-stack engineers or people who can create everything from ideas to prototypes by themselves is because they can put off paying for the cost of language until the prototypes take shape.
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