Maximizing output by following the principle of comparative advantage requires

Question

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Maximizing output by following the principle of comparative advantage requires both specialization and exchange. Specialization means that each individual or country focuses on producing the goods or services they have a comparative advantage in, while exchanging means trading those goods and services with others who specialize in producing different goods and services that they have a comparative advantage in. This leads to greater efficiency and higher overall output, as each party can focus on what they do best and benefit from the trade of goods and services.

Maximizing Output by Following the Principle of Comparative Advantage Requires