Mutually beneficial trade occurs if both persons

Question

Quizplus · Accepted Answer

Mutually beneficial trade occurs when both parties produce the product for which they have a comparative advantage. This means that they focus on producing the good or service they are relatively better at producing and exchanging it for the good or service they are less efficient at producing. By specializing in this way, both parties can produce more and benefit from the increased quantity of goods and services available to them through trade.

Mutually Beneficial Trade Occurs If Both Persons