-In Table 1

question 71

Multiple Choice

-In Table 1.2, assume that before specialization and trade, both countries were producing at production possibility C. If each country specializes according to comparative advantage, what will be the gains from trade?

• A) 20 units of sugar and 10 units of coffee
• B) 20 units of coffee and 10 units of sugar
• C) 20 units of coffee
• D) 10 units of sugar
• E) 80 units of coffee and 90 units of sugar