The principle of comparative advantage explains specialization and trade among countries but not among individuals.

Question

Quizplus · Accepted Answer

The principle of comparative advantage applies to both countries and individuals. It states that individuals or countries specialize in producing goods or services in which they have the lowest opportunity cost and trade with others who specialize in producing goods or services they don't. This results in mutual benefit for all parties involved.

The Principle of Comparative Advantage Explains Specialization and Trade Among