A person can benefit from specialization and trade by obtaining a good at a price that is
A)lower than his or her opportunity cost of that good.
B)the same as his or her opportunity cost of that good.
C)higher than his or her opportunity cost of that good.
D)different than his or her opportunity cost of that good.

Question

Quizplus · Accepted Answer

By specializing in producing goods or services in which one has a comparative advantage, an individual can produce more efficiently and at a lower opportunity cost. By trading with others who specialize in producing different goods or services, one can obtain those goods or services at a lower cost than if they had tried to produce them themselves. Therefore, the price obtained through trade should be lower than the individual's opportunity cost of producing that good, which is the next best alternative forgone.

A Person Can Benefit from Specialization and Trade by Obtaining