According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by
A) the high opportunity cost producer.
B) the low opportunity cost producer.
C) the producer who is able to hire workers at the lowest wage.
D) the party that can complete the productive activity most rapidly.

Question

Quizplus · Accepted Answer

The law of comparative advantage states that overall production increases when each party specializes in the activity for which they have the lowest opportunity cost, allowing for more efficient allocation of resources.

According to the Law of Comparative Advantage, Both Individuals and Nations