Samoa could produce either 3 coconuts or 12 pineapples per worker, while Guam could produce either 5 coconuts or 20 pineapples per worker. In this situation:
A) if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
B) Guam will be better off if it exports coconuts and imports pineapples.
C) both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
D) mutually beneficial trade cannot occur.
Correct Answer:
Verified
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