Specialization is when people tend to produce any one or few goods. Basically, different people produce a variety of products and services. Then they exchange these for other’s products and services. This is known as trade. It is very rare to find human beings producing almost all the services and goods and consuming them.Here, we are going to learn about comparative advantage.
We are going to see that how humans achieve profit out of specializing in products. These products though should be able to provide people with comparative advantage.