Production possibilities data for Gamma and Sigma.All data are in tons.Gamma production possibilities: Sigma production possibilities:
On the basis of the above information:

Question

Production possibilities data for Gamma and Sigma.All data are in tons.Gamma production possibilities:  Sigma production possibilities:
 On the basis of the above information:

Quizplus · Accepted Answer

From the given data, we can see that Gamma has a comparative advantage in producing tea (being able to produce either 2000 tons of tea or 5000 pots) while Sigma has a comparative advantage in producing pots (being able to produce either 7500 tons of tea or 3000 pots). Thus, it would be most efficient for Gamma to specialize in producing tea and for Sigma to specialize in producing pots. This means that Gamma should export tea to Sigma and Sigma should export pots to Gamma, resulting in both countries being better off.

Production Possibilities Data for Gamma and Sigma