Country X sends agricultural commodities to country Y, whereas country Y sends industrial goods to country X. If the trade pattern between X and Y is explained by the theory of comparative advantage, what conclusion can be drawn from this?
- ABoth countries derive an equal benefit from engaging in trade.
- BCountry X has more fertile agricultural land than country Y.
- CNeither country has an absolute advantage in the production of both sets of goods.
- DThe opportunity cost of producing agricultural commodities is greater in Y than in X.