A country should produce a good if it has a lower opportunity cost for producing that good than another country does.

Question

Quizplus · Accepted Answer

This is the principle of comparative advantage, which states that a country should specialize in producing and exporting goods that it can produce at a lower opportunity cost than another country, and import goods that another country can produce at a lower opportunity cost. This allows for both countries to benefit from trade.

A Country Should Produce a Good If It Has a Lower