Use the following data in Table 4 to answer Question (38), The following are production possibilities data for
countries Gamma and Sigma. All data are in tons.
Gamma's production possibilities
Table 4
A B C D E
Tea 80 60 40 20 0
Pots 0 30 60 90 120
Sigma's production possibilities
A B C D E
Tea 120 90 60 30 0
Pots 0 30 60 90 120
On the basis of the Table 4 information:
Gamma should export both tea and pots to Sigma.
Sigma should export tea to Gamma, and Gamma should export pots to Sigma.
Gamma should export tea to Sigma, and Sigma should export pots to Gamma.
Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots.