Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After examining each country's production possibilities frontier, it is clear that:

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Both countries can benefit from trade because a comparative advantage exists. This is because each country has a different opportunity cost for producing each good. For example, Country A has a lower opportunity cost for producing wheat, while Country B has a lower opportunity cost for producing cars. By specializing in the production of the good with the lower opportunity cost, each country can produce more goods overall and trade with the other country for the good that they have a higher opportunity cost for producing. This will allow both countries to consume more of both goods than they would be able to produce on their own.

Refer to the Figure Shown, Which Represents the Production Possibilities