If people specialize in producing those goods for which they possess a comparative advantage,then an economy as a whole can produce a greater quantity of goods.

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This is the basic principle of comparative advantage, which states that if countries (or individuals) specialize in producing goods for which they have a lower opportunity cost, then they can trade with other countries (or individuals) to gain access to a wider range of goods at a lower total cost than if they tried to produce everything themselves. This leads to an increase in total output and efficiency for the global economy as a whole.

If People Specialize in Producing Those Goods for Which They