1)What are the differences between absolute advantage and comparative advantage?

2)What are the conditions for a monopolistic market?

1)Absolute and comparative advantage can apply to microeconomic analyses when evaluating competitiveness across specific industries. They entail fundamental reasons why economies identify economic strengths and convert them into full export potential.

Absolute advantage describes the upper hand that producers enjoy when extensive production factors empower them to manufacture high-quality products, in large quantities, and fast turnarounds. Developed economies like Germany enjoy an absolute advantage over developing economies when it comes to industrial competition. Moreover, the United Nations enjoys an absolute advantage in military force against foes like Iran and ISIS.

Comparative advantage is more macroeconomic because it weighs opportunity costs. Policymakers may identify a market niche that presents local producers with an absolute advantage over the industry. For example, local markets could achieve an absolute advantage by hiring underage labor. However, the government asserts that underage citizens should only engage in education, sports, or morally-upright entertainment. There isn't any comparative advantage of getting insignificant profitability at the expense of training future academicians and other professionals.

2)One condition for a monopolistic market is that there have to be many buyers and sellers. Due to a lack of competition in the market, a company can control its product pricing policy without any other companies' reaction. The other condition is that a company is free to enter or exit a market. Under a monopolistic market, firms will enter the market where an existing firm is making super-profits, which will lead to an increase in supply and decrease product prices, hence average profits. The third condition is product differentiation in the market, where the buyers differentiate the goods with others. It means products from other firms might be slightly different from each other. The difference might be real in terms of design and material used or imaginary through advertising and trademarking.