Country R and country S are about to exchange 1 unit of product X for 2 1/2 unit of product Y. Using a fixed quantity of resources: - country R can make either 30 units of product X or 50 units of product Y - country S can make either 20 units of product X or 25 units of product Y. Which statement is correct, according to the theory of comparative advantage?
- AFree trade will benefit both R and S.
- BFree trade will benefit neither R nor S.
- CFree trade will benefit R but not S.
- DFree trade will benefit S but not R.