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16 October, 22:27

Producing according to comparative advantage and specializing in one good over another, means that the good with the higher opportunity cost is not produced. Why would a country be willing to give up the production of that good?

a. The people of the country would find another good to substitute for the lost good.

b. The people of the country would use the excess good they continue to produce to trade for the good they no longer produce.

c. The people of the country would never accept the loss of the good.

d. The people of the country would allow this only in cases of a good they didn't want.

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  1. 17 October, 00:06
    0
    The answer to this question is C.
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