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Complete specialization occurs when each? individual, firm, or? country: A. produces only what it is known...

Complete specialization occurs when each? individual, firm, or? country: A. produces only what it is known for. B. does not rely on trade for goods and services. C. consumes specialty goods instead of generic equivalents. D. produces only what it has a comparative advantage in.

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Answer #1

The answer is D. produces only what it has a comparative advantage in.

Complete specialization occurs when each produces only what it has a comparative advantage in.On the basis of comparative advantage theory complete specialization occurs when one country specializes in the production of that good in which has a comparative advantage ie the good which it can produce at a lower opportunity cost even though it may have an absolute advantage in the production of one or more goods.

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