![]() |
|
|
|
|
|
One possibility is to divide
By doing so, both Johnson and Miller can consume more than would be possible otherwise.
The concept of comparative advantage tells us that total production can be increased through specialization. It does not tell us how the additional output will allocated?
The potential gains from specialization and trade is the reason why most economists support free trade.
Those who do not support free trade are more concerned about the distribution of the gains than the potential increase in output.