With a given amount of labour and other resources, producers in the nation of Alphania can produce either 100 widgets or 50 wackets. Thus, two widgets must be given up to produce each wacket. Using the same amount of labour and resources, producers in Betania can produce 40 widgets or 40 wackets-so one widget must be given up for each wacket produced. Based on this information, Betania has a comparative advantage in the production of wackets.

Question

Quizplus · Accepted Answer

Betania has a lower opportunity cost for producing wackets (1 widget given up per wacket) compared to Alphania (2 widgets given up per wacket), indicating Betania's comparative advantage in wacket production.

With a Given Amount of Labour and Other Resources, Producers