The table shows the factor inputs needed to produce wheat and cars in countries X and Y. Units of factor inputs needed to produce one tonne of wheat: country X 4, country Y 8. Units of factor inputs needed to produce one car: country X 2, country Y 6. What enables both countries to gain from trade?
- ACountry X has an absolute advantage in wheat and car production.
- BCountry Y has an absolute advantage in wheat and car production.
- CCountry Y has a comparative advantage in wheat production.
- DOpportunity cost of wheat and car production is the same between countries.