In a trade scenario where two countries, A and B, have differing opportunity costs for producing two goods, which of the following statements best reflects the concept of comparative advantage and the potential gains from trade?

In a trade scenario, comparative advantage means that a country can produce a good at a lower opportunity cost than another country. For example, if Country A can produce cars with less sacrifice of wheat than Country B, then Country A has a comparative advantage in car production. This allows both countries to specialize in what they produce best and then trade, which can lead to more overall goods for both. If Country A focuses on making cars and Country B focuses on making wheat, they can trade and both end up with more of both goods than if they tried to produce both on their own. Thus, by recognizing their comparative advantages, both countries benefit from trade.