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

Correct Answer:

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