Exhibit 28-2 Karl Can Produce Either 10 Tons of Oranges

Exhibit 28-2 Karl can produce either 10 tons of oranges or 5 tons of apples in a year,while Adam can produce either 5 tons of oranges or 10 tons of apples.
Refer to Exhibit 28-2.If the exchange rate between apples and oranges in international markets is 1 ton of apples per 3 tons of oranges:

A) Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export oranges to other countries.
B) Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export apples to other countries.
C) Karl and Adam will trade apples and oranges with one another.
D) Karl and Adam will not specialize or engage in international trade.