Question: 8) Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then A) both countries could benefit from

8) Given the information in the table above, if the world equilibrium price of widgets were 4

cloth, then A) both countries could benefit from trade with each other.

B) neither country could benefit from trade with each other.

C) each country will want to export the good in which it enjoys comparative advantage.

D) neither country will want to export the good in which it enjoys comparative advantage.

E) both countries will want to specialize in cloth.

Why is the right answer is A

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