Calculating Gains From Specialization
Assume constant opportunity costs for two countries, Alpha and Beta. Country Alpha can produce 10 units of good X or 30 units of good Y, while Country Beta can produce 20 units of good X or 40 units of good Y. If both countries specialize according to comparative advantage and the terms of trade are 1 unit of good X for 2 units of good Y, what is the total gain from specialization?
A
20 units
B
5 units
C
10 units
D
30 units
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