-Refer to Table 3-6. How could Denmark and Italy benefit?

Question

Quizplus · Accepted Answer

Denmark and Italy can benefit from trade by specializing in the production of goods in which they have a comparative advantage. If Denmark is more efficient at producing bread and Italy is more efficient at producing cheese, both countries can benefit by specializing in these goods and then trading with each other. This allows each country to consume more of both goods than it could if it tried to produce both goods on its own.