If the United States can produce more of both bread and milk than Germany can, then

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Quizplus · Accepted Answer

The United States can still benefit from trade with Germany because of comparative advantage. Even if the United States can produce more bread and milk than Germany, there may be other goods or services that Germany can produce more efficiently than the United States. By specializing in and trading those goods, both countries can benefit from trade. Comparative advantage is based on the opportunity cost of producing a good, not just the absolute amount that can be produced.

If the United States Can Produce More of Both Bread