(Table) Allow the United States to Produce at Point C

Multiple Choice

(Table) Allow the United States to produce at point C and Chile to produce at point K on the production possibilities schedules. Now, let the United States trade away 6 loaves of bread in return for 20 bushels of avocados. Which statement is TRUE?

A) Both countries are better off from this trade because they both consume outside their production possibilities frontier (PPF) .
B) Both countries are better off from this trade because they both produce outside their PPF.
C) Only the United States is better off from this trade.
D) Only Chile is better off from this trade.