Trade takes place because of
ECONOMICS
JAMB 2011
Trade takes place because of
- A. marginal utility
- B. inefficiency in production
- C. opportunity cost
- D. comparative advantage
Correct Answer: D. comparative advantage
Explanation
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. People engage in trade so as to exchange these goods that are produced or services rendered at a cheaper cost between one another
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