The principle of comparative advantage suggests that,if New York and Florida exchange taxi parts for oranges,each state will be made worse off.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that countries (or states) should specialize in producing goods in which they have a lower opportunity cost and trade with other countries (or states) for goods in which they have a higher opportunity cost. Therefore, if New York and Florida specialize in producing the goods in which they have a comparative advantage and engage in trade, both states can potentially benefit and be better off.

The Principle of Comparative Advantage Suggests That,if New York and Florida