Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames. Based on this information, which of the following is true?
a. Both countries could benefit if the U.S. traded cell phones to Canada for picture frames.
b. Both countries could benefit if the U.S. traded picture frames

to Canada for cell phones.
c. Canada could gain from trade but the U.S. could not.
d. The U.S. could gain from trade but Canada could not.


a

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