Question

When a person specializes in goods and services on can produce at a low
cost that makes it possible for trading partners to produce a larger joint
output. This is called. *

Answer 1

Answer: law of comparative advantage

Explanation:

The scenario above explains comparative advantage. Comparative advantage refers to the ability of an economic agent i.e individual, firms or government to produce goods at an opportunity cost that's lower when compared to another economic agent.

This then means such inividual or firm can be able to manufacture more goods at a cheaper price when compared to other individuals or firms. This also brings about increase in output.