Because of the existence of comparative advantage, the total output of goods is higher when each producer
A) produces many different goods.
B) produces at the midpoint of its PPF.
C) specializes in the production of one good or a few goods.
D) makes both intermediate and final goods.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that total output increases when each producer specializes in the production of goods for which they have a lower opportunity cost compared to others. This specialization allows for more efficient production and a higher total output of goods.

Because of the Existence of Comparative Advantage, the Total Output