Table 2-2

Avokia	Oranges	Apples
0	16
1	12
2	8
3	4
4	0

Baldonia	Oranges	Apples
0	8
1	6
2	4
3	2
4	0

Refer to Table 2-2. According to the law of comparative advantage, both Avokia and Baldonia could gain if

Avokia produced all of the apples and oranges and Baldonia did not produce anything.

Avokia specialized in producing apples, Baldonia specialized in producing oranges, and they traded.

Avokia specialized in producing oranges, Baldonia specialized in producing apples, and they traded.

Baldonia and Avokia were both were self-sufficient and did not trade.