Answer the question on the basis of the following production possibilities data for Landia and Scandia: Landia Production Possibilities:
Scandia Production Possibilities:
Refer to the given data.Assume that before specialization and trade Landia was producing combination C and Scandia was producing combination B.If these two nations now specialize completely based on comparative advantage,the total gains from specialization and trade would be:
A) 8 fish and 2 chips.
B) 10 fish and 4 chips.
C) 0 fish and 8 chips.
D) 4 fish and 6 chips.
Correct Answer:
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