Exhibit 2-10 ​ ​

Exhibit 2-10
​ ​
-Refer Exhibit 2-10.Which of the following statements is true?

A) There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y) is the same for both persons.
B) Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good X and person B specializes in the production of good Y.
C) Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good Y and person B specializes in the production of good X.
D) Both person A and person B will benefit from trade as long as person A produces both good X and good Y,and person B produces neither good.
E) Both person A and person B will benefit from trade as long as person B produces both good X and good Y,and person A produces neither good.

Correct Answer:

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