Exhibit 28-1 Alpha can produce either 18 tons of oranges or 9 tons of apples in a year,while Omega can produce either 16 tons of oranges or 4 tons of apples.
Refer to Exhibit 28-1.The opportunity costs of producing 1 ton of oranges for Alpha and Omega,respectively,are:

Question

Quizplus · Accepted Answer

The opportunity cost of producing 1 ton of oranges for Alpha is 0.5 tons of apples (18 tons / 9 tons), and for Omega, it is 0.25 tons of apples (16 tons / 4 tons). Therefore, Alpha has a higher opportunity cost of producing oranges than Omega. Thus, Omega should produce oranges, and Alpha should focus on producing apples to maximize their production efficiency. The best choice, therefore, is for Omega to produce oranges and Alpha to produce apples.

Exhibit 28-1 Alpha Can Produce Either 18 Tons of Oranges