Scenario: Consider Two Economies, Beta and Zeta

Multiple Choice

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.Which of the following statements is true in this case?

A) Beta and Zeta will suffer losses if they engage in foreign trade.
B) Zeta has an absolute advantage in producing both oranges and apples.
C) Beta has a comparative advantage in producing both oranges and apples.
D) Zeta should specialize in producing oranges, and Beta should specialize in producing apples.