The law of comparative advantage explains why
A)individuals choose specialized careers.
B)firms specialize in the production of certain goods.
C)nations develop strengths in certain industries.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

The law of comparative advantage applies to individuals, firms, and nations, as it explains why they all choose to specialize in certain areas of production where they have a comparative advantage. This results in greater efficiency and the opportunity for increased trade and economic growth.

The Law of Comparative Advantage Explains Why