Figure 3-10 Alice and Betty's Production Possibilities in One 8-Hour Day

Multiple Choice

Figure 3-10
Alice and Betty's Production Possibilities in one 8-hour day.
Alice's Production Possibilities Frontier
Betty's Production Possibilities Frontier
-Refer to Figure 3-10.If point A represents Alice's current production and point B represents Betty's current production,under what circumstances can both Alice and Betty benefit from specialization and trade?

A) Alice produces more pizzas and Betty produces more lemonade.
B) Alice produces more lemonade and Betty produces more pizzas.
C) Both Alice and Betty produce only pizzas.
D) There are no circumstances under which both Alice and Betty can benefit from specialization and trade.