You Are the Minister of Trade for a Small Island

Multiple Choice

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: If you offer to give the other island 1 coconut for every 4 fish they give you, then they will:

A) refuse your offer because they have a comparative advantage in fish.
B) accept your offer because your opportunity cost of a coconuts is less than 4 fish.
C) refuse your offer because they can produce as many coconuts as you can.
D) accept your offer because their opportunity cost of a coconut is greater than 4 fish.