Comparative advantage explains why people

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of an individual, firm or country to produce a good or service at a lower opportunity cost than others. This means that instead of trying to produce everything themselves, they specialize in producing the goods and services in which they have a comparative advantage and trade with those who have a comparative advantage in producing other goods and services. As a result, both parties benefit from the trade. Therefore, the correct answer is (C) specialize and trade.

Comparative Advantage Explains Why People