Suppose Country A is better than Country B at producing all goods. Which of the following statements is true?
A. Country A's superior productivity will lead to higher domestic prices, so trade between the two countries could only benefit Country A.
B. As long as the opportunity cost of producing the goods differs between the countries, there will still be opportunities for mutually beneficial trade.
C. Trade between Country A and Country B is likely only to benefit Country B since it does not have the productivity advantage that Country A does.
D. Country A will have a lower opportunity cost than Country B for the production of all goods.
Answer: B
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