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Refer to the Data Below

Question 55

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Refer to the data below.Assume that before specialization and trade Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage,the gains from specialization and trade will be:
Production possibilities data for Gamma and Sigma.All data are in tons.
Gamma production possibilities: Refer to the data below.Assume that before specialization and trade Gamma and Sigma both chose production possibility  C.  Now if each specializes according to comparative advantage,the gains from specialization and trade will be: Production possibilities data for Gamma and Sigma.All data are in tons. Gamma production possibilities:   Sigma production possibilities:   A)  40 tons of pots. B)  20 tons of tea and 20 tons of pots. C)  20 tons of tea. D)  40 tons of tea.
Sigma production possibilities: Refer to the data below.Assume that before specialization and trade Gamma and Sigma both chose production possibility  C.  Now if each specializes according to comparative advantage,the gains from specialization and trade will be: Production possibilities data for Gamma and Sigma.All data are in tons. Gamma production possibilities:   Sigma production possibilities:   A)  40 tons of pots. B)  20 tons of tea and 20 tons of pots. C)  20 tons of tea. D)  40 tons of tea.


A) 40 tons of pots.
B) 20 tons of tea and 20 tons of pots.
C) 20 tons of tea.
D) 40 tons of tea.

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