Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) At the points where they are producing (A and A', respectively), Alphaland has a(n) _______ in producing _______ and Omegaland has a _______ in producing _______.

Question

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland
 
-(Exhibit: Production Possibilities in Alphaland and Omegaland) At the points where they are producing (A and A', respectively), Alphaland has a(n) _______ in producing _______ and Omegaland has a _______ in producing _______.

Quizplus · Accepted Answer

At point A, Alphaland can produce either 60 cars or 30 computers, while Omegaland can produce either 30 cars or 15 computers at point A'. This means that Alphaland has a comparative advantage in producing computers (since they have a higher opportunity cost in producing them) and Omegaland has a comparative advantage in producing cars (since they have a higher opportunity cost in producing computers).

Use the Following to Answer Question(s): Production Possibilities in Alphaland