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If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible.

Respuesta :

If the opportunity cost of production for two goods is different between two countries then mutually beneficial trade is possible.

What is opportunity cost?

Opportunity cost is an economist term for expressing cost in terms of foregone alternative.

It is the benefits of second best alternatives (when the first best is chosen) or alternative use of something, which is not decided on (the cost of not using land for farming and using it for building a house instead).

Hence, If the opportunity cost of production for two goods is different between two countries then mutually beneficial trade is possible.

Learn more about opportunity cost here : https://brainly.com/question/481029