If Country A can produce wine at a lower opportunity cost than cheese, and Country B can produce cheese at a lower opportunity cost than wine, what should each country specialize in?

• A. Country A should specialize in cheese, and Country B should specialize in wine.
• B. Neither country should specialize in any good.
• C. Both countries should produce both goods equally.
• D. Country A should specialize in wine, and Country B should specialize in cheese.

Answer: (D)