Table 14-2 Alpha Can Produce Either 18 Oranges or 9 Apples an Apples

Table 14-2
Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour.
-Refer to Table 14-2.Which of the following statements about Alpha and Omega is the most accurate?

A) Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
B) If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
C) Alpha should export to Omega, but Omega should not export to Alpha.
D) If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade.

Correct Answer:

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