Since Sealand has abundant land and labour, and Fantasia has more labour than Sealand, while X requires much land but little labour and Y requires much labour but little land, what can be inferred about Sealand?
- AIt is unlikely to gain from trade with Fantasia.
- BIt will have an absolute advantage in the production of both X and Y.
- CIt will have a comparative advantage in the production of X.
- DIt will have a comparative advantage in the production of Y.