If country A exports good X to country B and country B exports good Y to country A, it is most likely that

A) A has an absolute advantage in the production of good X.
B) B has a comparative advantage in the production of good Y.
C) the opportunity cost of domestic production of good Y for country A is lowered with trade.
D) B is producing less of good Y than in the no-trade case.

ANSWER:

B