(Figure: Biscuits and Cookies PPFs) Looking at Greg and Melissa's production possibilities frontiers (PPFs), what production and trade situation would allow both Greg and Melissa to consume a combination of biscuits and cookies outside their PPF?

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In order to consume a combination of biscuits and cookies outside their PPFs, both Greg and Melissa need to specialize in producing the good in which they have a comparative advantage and then trade with each other. Looking at the PPFs, it appears that Greg has a comparative advantage in the production of cookies, while Melissa has a comparative advantage in the production of biscuits. Therefore, it would be best if Greg produces 200 cookies and Melissa produces 160 biscuits. Then, Greg can trade 100 of his cookies in exchange for 60 of Melissa's biscuits, allowing them both to consume a combination of biscuits and cookies outside their PPFs. Option B is the only choice that matches this scenario.