Any two individuals gain from trade
A)unless one has an absolute advantage in producing all goods.
B)if each specializes in the production of the good for which he has the higher opportunity cost.
C)unless they have the same opportunity costs for producing all goods.
D)unless they have different opportunity costs for producing all goods.
E)unless they have the same absolute advantage in producing all goods.

Question

Quizplus · Accepted Answer

Trade is beneficial when individuals have different opportunity costs, allowing each to specialize in the production of goods for which they have a comparative advantage. If they have the same opportunity costs, there is no benefit from specialization and trade.

Any Two Individuals Gain from Trade