Was law of comparative costs developed by David Ricardo?

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2026-02-19 01:20

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Yes, the law of comparative costs, also known as the theory of comparative advantage, was developed by economist David Ricardo in the early 19th century. This principle explains how countries can benefit from trade by specializing in the production of goods for which they have a lower opportunity cost, even if one country is more efficient in producing all goods. Ricardo's insights laid the foundation for modern trade theory and highlighted the benefits of international trade.

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