If two nations have straight-line production possibilities curves:

A.  then their trading possibilities curves must lie inside the production possibilities curves.
B.  there will be no basis for mutually advantageous trade.
C.  there will be a basis for mutually advantageous trade whether the slopes are equal or not.
D.  there will be a basis for mutually advantageous trade provided the slopes differ.

ANSWER

D.  there will be a basis for mutually advantageous trade provided the slopes differ.