A Widget Has an Opportunity Cost of 4 Wadgets in Saudi

Multiple Choice

A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2 wadgets in the United States. Given these opportunity costs, 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.