Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange




A) only if Brenda becomes faster at producing X or Y.
B) if Agnes specializes in the production of Y and Brenda in X.
C) only if Agnes becomes faster at producing X.
D) if Agnes specializes in the production of X and Brenda in Y.


Answer: D


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