Mutual gains from voluntary trade require differences in

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Differences in opportunity costs between trading partners allow for mutually beneficial exchange, as each party can specialize in the production of the good or service for which they have a comparative advantage. This leads to increased efficiency, higher output, and lower costs, resulting in gains for both parties involved in the trade. Internal costs, implicit costs, import tariffs, and external costs do not necessarily result in mutual gains from trade.

Mutual Gains from Voluntary Trade Require Differences in