Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A. Columbia has a comparative advantage in producing papayas and bananas.
B. These countries cannot gain from trading.
C. These countries would increase combined consumption if they specialized and traded.
D. Columbia has a comparative advantage in producing papayas but not bananas.
Answer: B
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