Autos and Chemicals Are in Units of One Million

Autos and chemicals are in units of one million Refer to the above tables.Assume that prior to specialization and trade Germany and the C.Now if each specializes according to its comparative advantage,the resulting total gains from specialization and trade will be: United States both choose production possibility

A) 8 units of autos.
B) 6 units of autos.
C) 6 units of autos and 8 units of chemicals.
D) 8 units of autos and 6 units of chemicals.
Germany has the comparative advantage in autos because of the lower opportunity cost (3 vs.6) ,while the United States has the comparative advantage in chemicals because of the lower opportunity cost (¹/₆ vs.¹/₃) .So,Germany should produce autos and the United States should produce chemicals.Initially,combined output is 14 autos and 60 chemicals.After specialization,output will be 20 autos (from Germany) and 60 chemicals (from the United States) .This is a net gain of 6 autos with no increase in chemicals.