The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of

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The principle of comparative advantage states that producers should specialize in producing goods and services in which they have a lower opportunity cost, and trade with others for goods and services in which they have a higher opportunity cost. By specializing in certain activities, producers can become more efficient and productive, leading to an overall increase in productivity.

The Introduction of New Technologies That Allow Producers to Specialize