Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 3 - Part I - Interdependence and the Gains from Trade - Questions for Review - Page 59: 4

Answer

Comparative advantage is most important idea for trade. As the both parties trade, they have to decide whether it makes sense for people to produce a good when someone else can make that same good at a lower opportunity cost.

Work Step by Step

Think about what is comparative advantage
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