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Figure 1. An Example of China-U.S. Trade Possibilities Considering Figure 1, prior to trade the production of textiles and aircraft for both China and the

Figure 1. An Example of China-U.S. Trade Possibilities

Considering Figure 1, prior to trade the production of textiles and aircraft for both China and the U.S. are 19 and 9.Which of the following represents the pre-trade situation?

a. China has a comparative advantage in the production of aircraft and the U.S. has a comparative advantage in the production of textiles.
b. The U.S. has an absolute advantage in the production of both textiles and aircraft.
c. China has an absolute advantage in the production of both textiles and aircraft.
d. China has a comparative advantage in the production of textiles and the U.S. has a comparative advantage in the production of aircraft.

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