Given that countries A and B each specialize in the production of one good and voluntarily
Trade it for the other country's good, then

Question

Quizplus · Accepted Answer

Both countries will experience positive gains from trade according to the principle of comparative advantage. By specializing in the production of the good in which they have a lower opportunity cost, each country can produce more of it with the same amount of resources. By trading, they are able to consume more of both goods than they would be able to produce on their own, resulting in a net gain for both countries.

Given That Countries a and B Each Specialize in the Production