Microeconomics Question from Walter E. Williams:Edit
"What are the essential characteristics of exchange opportunities and production opportunities, on the social levels?"
Production increases aggregate wealth. Specializing in one good will take advantage of economies of scale and the producer can maximize the social value of his output/income. Trade increases aggregate utility. To the degree which we observe trade, it must be a utility improving endeavor.
Bottom line: Exchange preserves social totals, and production alters social totals
Hirshleifer & Hirshleifer, p 424. (?sixth edition?)
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