If a country has a comparative advantage in the production of all goods, it should:

Question

Quizplus · Accepted Answer

Specialising in the production of goods with the lowest opportunity cost means that the country can produce more of that good given the same resources compared to the other goods. This will lead to increased efficiency and productivity, resulting in lower prices and higher export demand. By specialising in the production of goods with the lowest opportunity cost, the country can maximise its gains from trade and achieve a higher standard of living for its citizens.

If a Country Has a Comparative Advantage in the Production