Figure 3: Two Production Possibilities Frontiers Britain United States 100 30 90 *T 200 Dr. Ibrahim Abou Saad Assuming that all assumptions of the classical trade theory hold true. Figure 3 provides the production possibilities frontiers between Textiles (T) and Soybeans (S) in the United States (A) and Britain (B). Referring to Figure 3, which of the following is true according to Adam Smith's Absolute Advantage Theory? The United States has an absolute advantage in producing soybeans. Britain has an absolute advantage in producing textiles. Britain has an absolute advantage in producing soybeans. None of the above is true