16

Which of the following statements about Alpha and Omega is 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 apples and Omega specializes in growing oranges, they could both gain by specialization and trade.

c. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.

d. Since Alpha has a comparative advantage in producing both goods, NO mutual gains from trade are possible.