Two people can benefit from specialization and trade by obtaining a good at a price that is
A) lower than his or her opportunity cost of that good.
B) the same as his or her opportunity cost of that good.
C) higher than his or her opportunity cost of that good.
D) different than his or her opportunity cost of that good.

Question

Quizplus · Accepted Answer

By specializing in producing a particular good or service, an individual can produce more of that good or service than if they tried to produce everything they need. This means that their opportunity cost of producing that good or service decreases, making it possible for them to trade it at a lower price than their opportunity cost. Therefore, the answer is A.

Two People Can Benefit from Specialization and Trade by Obtaining