Suppose it takes workers in Baldistan 20 hours to produce a metal folding table,and it takes workers in Plochia 18 hours to produce an identical table.Workers in Baldistan take 40 hours to produce a set of ceramic plates,and it takes workers in Plochia 22 hours to make identical plates.Which of the following is true?
A) Plochia is better off making tables and plates alone and not trading with Baldistan because Plochian workers are faster at producing both types of goods.
B) Baldistan and Plochia can gain from trading with one another.
C) Baldistan has a comparative advantage in making plates.
D) Plochia has a comparative advantage in making both tables and plates.
Correct Answer:
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