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Individual agents may include, for example, households, firms, buyers, and sellers.
More total output and utility thereby results from specializing in production and trading than if each country produced its own high-tech and low-tech products.
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Part of the cost of making pretzels is that neither the flour nor the morning are available any longer, for use in some other way.
The opportunity cost of an activity is an element in ensuring that scarce resources are used efficiently, such that the cost is weighed against the value of that activity in deciding on more or less of it.
Opportunity costs are not restricted to monetary or financial costs but could be measured by the real cost of output forgone, leisure, or anything else that provides the alternative benefit (utility). It has been observed that a high volume of trade occurs among regions even with access to a similar technology and mix of factor inputs, including high-income countries.
This has led to investigation of economies of scale and agglomeration to explain specialization in similar but differentiated product lines, to the overall benefit of respective trading parties or regions. The general theory of specialization applies to trade among individuals, farms, manufacturers, service providers, and economies.There you will find all popular musical directions.On our website, we have the songs, which seem attractive even to well informed music addicts.You would possibly decide to make an experiment and discover many new artists and bands.Our music collection is updated daily, so that every visitor is able to find the song or album of his interest.Choices must be made between desirable yet mutually exclusive actions.