The Gains from Trade Output Before Specialization and Trade U.S. Japan Total Product A 20,000 30,000 50,000 Product B 500,000 30,000 530,000 Output After Specialization and Trade U.S. Japan Total Net Gain Product A 0 60,000 60,000 10,000 Product B 800,000 0 800,000 270,000 What is the benefit of the U.S. producing only Product B and Japan producing only Product A? A) Because of comparative advantage, the two countries can produce a greater amount of products. B) Because of absolute advantage, the two countries can produce a greater amount of products. C) The two countries can produce enough of each product individually to meet their needs. D) The total output of Product B increases by 300,000 units.
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