In order to achieve the maximum gains from trade, people should specialize according to

Question

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Specializing according to comparative advantage means that individuals or countries should produce the goods or services that they can produce at a relatively lower opportunity cost compared to their trading partners. This allows for both parties to gain from trade as they are able to exchange goods or services at a mutually beneficial rate. Absolute advantage and PPF do not take into account opportunity cost and may not lead to maximum gains from trade. Property rights are important for the functioning of markets and trade but do not necessarily increase gains from trade.

In Order to Achieve the Maximum Gains from Trade, People