Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia.
Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be
A) 4 tons of beans.
B) 1 ton of pork and 2 tons of beans.
C) 4 tons of pork.
D) 2 tons of pork and 4 tons of beans.
Correct Answer:
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