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Suppose that the East requires 100 units of labor to produce one car and 200 units of labor the produce one bus. Suppose that the
Suppose that the East requires 100 units of labor to produce one car and 200 units of labor the produce one bus. Suppose that the West requires 600 units of labor to produce one car and 300 units of labor to produce one bus. Which of the following statements is correct? A. It would not be possible for both countries to gain from trade. B. West has an absolute advantage in both cars and busses. C. East has an absolute advantage in both cars and busses. D. Gains from trade for both countries could occur if East specialized in cars and West specalized in busses. E. Both c) and d) are correct
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