Refer to the Graph Shown

Multiple Choice

Refer to the graph shown. The graph demonstrates Saudi Arabia's and the United States' production possibility curves for widgets and wadgets. Given these production possibility curves, you would suggest that:

A) Saudi Arabia specialize in widgets and the United States in wadgets.
B) No trade should take place.
C) Saudi Arabia specialize in wadgets and the United States in widgets.
D) Both countries should produce an equal amount of each.