The production possibility frontiers of Northland and Southland are given. Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas. Could they increase their consumption bundle by optimizing production and trading?NorthlandSouthlandApplesBananasApplesBananas300300205202015101040015060
A. Yes, they could gain 75 bananas and 60 apples.
B. Yes, they could gain up to 60 apples without losing bananas.
C. No, Southland does at least as well at producing both, so it would have no incentive to trade.
D. Yes, they could gain up to 15 bananas without losing apples.
Answer: D
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