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

Question 35

Multiple Choice

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.Which of the following exchange rates between apples and oranges would allow both Alpha and Omega to gain by specialization and exchange?


A) 1 ton of oranges for 1/3 of a ton of oranges
B) 1 ton of apples for 3 1/3 tons of oranges
C) 1 ton of apples for 2 tons of oranges
D) 1 ton of oranges for 0.4 tons of apples

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