As long as two people have different opportunity costs, each can gain from trade by being able to obtain a good at a price lower than his or her opportunity cost.

Question

Quizplus · Accepted Answer

This statement is true because if two people have different opportunity costs for producing a particular good, then they can specialize in producing the good for which they have a lower opportunity cost and trade with each other to obtain the other good at a lower price than their opportunity cost of producing it. This leads to gains from trade for both parties.

As Long as Two People Have Different Opportunity Costs, Each