Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities curve, it is clear that:



A. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade.

B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade.

C. Country A will not benefit from trade.

D. Country B will lose by trading with Country A.


A. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade.

Economics

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