Tom and Jerry Have One Day to Work, but Two

Multiple Choice

Tom and Jerry have one day to work, but two tasks to focus on: building chairs and tables. If Tom spends all day building chairs, he will make 16 chairs. If he instead devotes his day to building tables, Tom will make 4 tables. If Jerry spends his day building chairs, he will make 14 chairs; if he spends the day building tables, he will make 7 tables. Based on their production possibilities frontiers, Tom and Jerry:

A) can both benefit from trade because absolute advantage exists.
B) can both benefit from trade because comparative advantage exists.
C) cannot benefit from trade because Tom has an absolute advantage at producing both goods.
D) will decide not to trade because no comparative advantage exists.