Because of the existence of comparative advantage, the total output of goods is higher when each producer
A) produces several different goods.
B) makes both intermediate and final goods.
C) produces at the midpoint of its PPF.
D) specializes in the production of a particular good.

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that each producer should focus on producing the good or service that they can produce most efficiently compared to others. By specializing in the production of a particular good, the producer can achieve higher levels of efficiency and productivity. As a result, the total output of goods increases when each producer specializes in their respective areas of comparative advantage.

Because of the Existence of Comparative Advantage, the Total Output