If Tom and Di Specialize in Producing the Goods in Which

If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then _ .

A) each will gain because each can consume a combination of goods that is outside her/his production possibility frontier
B) one of them will gain and the other will lose
C) each will produce a combination of goods that is within her/his production possibility frontier
D) they will lose because they are no longer able to produce and consume both goods.

Correct Answer:

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