Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units
of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable ﬁgures for nation Beta
are 60X and 40Y. Therefore, Alpha should specialize in Y and Beta in X.

Question

Quizplus · Accepted Answer

Alpha has a lower opportunity cost for producing Y, and Beta has a lower opportunity cost for producing X, so they should specialize accordingly.

Assume That by Devoting All Its Resources to the Production