Refer to the Figure Shown, Which Represents the Production Possibilities

Multiple Choice

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After examining each country's production possibilities frontier, it is clear that:

A) neither country will benefit from trade.
B) both countries can benefit from trade because an absolute advantage exists.
C) both countries could benefit from trade because a comparative advantage exists.
D) only Country A will benefit from trade.