As long as two people have different opportunity costs, each can gain from trade with the other, since trade allows each person to obtain a good at a price lower than his or her opportunity cost.

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Quizplus · Accepted Answer

This statement is based on the principle of comparative advantage, which suggests that even if one person is more efficient at producing both goods, both parties can still benefit from trade if they specialize in producing the goods for which they have a lower opportunity cost. This allows each person to trade for what they need at a lower cost than if they tried to produce it themselves, leading to mutual gains from trade.

As Long as Two People Have Different Opportunity Costs, Each