According to the law of comparative advantage,
A) each producer should strive toward self-sufficiency in order to maximize the total production of the economy.
B) each product should be produced by the lowest opportunity cost producer in order to maximize output.
C) one should never compare one's abilities with those of another.
D) each product should be produced by the individual who can produce more of that product than any other individual.

Question

Quizplus · Accepted Answer

The law of comparative advantage states that each product should be produced by the lowest opportunity cost producer in order to maximize output. This means that each producer can specialize in producing the goods or services in which they have a comparative advantage, and trade with other producers who have a comparative advantage in producing other goods or services, resulting in a more efficient allocation of resources and greater total production in the economy. Therefore, option B is the correct answer.

According to the Law of Comparative Advantage