The Economy of Tinyland Is Depicted Using a Typical Production

The economy of Tinyland is depicted using a typical production possibilities frontier, with good A on the horizontal axis and good B on the vertical axis, and the world price of good A is lower in the rest of the world relative to the price of good B than it would be in Tinyland in the absence of trade. In this case, with free trade the production point in Tinyland lies:

A) to the northwest of the no-trade production point.
B) to the southeast of the no-trade production point.
C) at the intersection of the production possibilities frontier and the vertical axis.
D) at the intersection of the production possibilities frontier and the horizontal axis.
E) at a point that is not correctly described by any of the above.