Multiple Choice

Figure 1.1

-Suppose that points A and B in Figure 1.1 represent pre-trade positions. If each country specializes according to comparative advantage, what are the potential gains to trade?
A) 6 cars
B) 6 cars and 6 units of food
C) 6 units of food
D) 4 units of food
E) 12 cars
Correct Answer:
Verified
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