Question

If individuals A and B can both produce only goods X and Y, and A does not have a comparative advantage in the production of either X or Y, then we know

Select one:

A. A must-have lower opportunity costs of production for both goods.

B. B has an absolute advantage in the production of X and Y.

C. A and B have the same opportunity costs for X and for Y.

D. B has a comparative advantage in the production of both X and Y.

E. the gains from trade will be large but only in one direction.