Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. East and West have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Assume that the East region had initially produced combination A and that the West region had produced combination C. If the two regions now specialize based on comparative advantage, the gains (in their combined output) from specialization are

A. 2 units of food and 4 units of clothing.
B. 6 units of clothing and 2 units of food.
C. 6 units of food and 2 units of clothing.
D. 2 units of clothing and 4 units of food.


Answer: C

Economics

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