If country A can produce both goods X and Y more eﬃciently, that is, with smaller absolute amounts of resources, than can country B,

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Quizplus · Accepted Answer

Even if country A is more efficient in producing both goods X and Y, it is still possible for A and B to engage in mutually advantageous specialization and trade. For example, country A may specialize in producing good X while country B specializes in producing good Y, and both countries can then trade with each other. This would lead to both countries benefiting from trade, even if A is more efficient in producing both goods.

If Country a Can Produce Both Goods X and Y