For a trade to have mutual benefits, terms of trade must be less than each trader's local opportunity costs.

Name: For a trade to have mutual benefits, terms of trade must be less than each trader's local opportunity costs.
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For a trade to have mutual benefits, the terms of trade must be between each trader's local opportunity costs, not less than them. This ensures that both parties gain more from trade than they would by producing the goods themselves.

For a Trade to Have Mutual Benefits, Terms of Trade