Fact Pattern 18-A Refer to the Following Data

Fact Pattern 18-A
Refer to the following data:
Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples.
-Refer to Fact Pattern 18-A.Which of the following statements is true?

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

Correct Answer:

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