_____ states that the person with the lowest opportunity cost should produce the good.

Question

Quizplus · Accepted Answer

Comparative advantage states that the person with the lowest opportunity cost (the cost of producing one good in terms of producing the other good forgone) should specialize in and produce the good, and can then trade with others for the goods they specialize in producing. This leads to mutually beneficial exchange and overall increased efficiency and productivity.

_____ States That the Person with the Lowest Opportunity Cost