Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta: Alpha Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline{ \mathrm { D } } \\ \text { Product } X & 3 & 2 & 1 & 0 \\ \text { Product } Y & 0 & 4 & 8 & 12 \end{array}$

Beta Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } \\\text { Product } X &6&4&2&0\\\text { Product } Y & 0 & 4 & 8 & 12 \end{array}$ Refer to the tables.According to the concept of comparative advantage:

Question

Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta: Alpha Production Possibilities:

\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline{ \mathrm { D } } \\ \text { Product } X & 3 & 2 & 1 & 0 \\ \text { Product } Y & 0 & 4 & 8 & 12 \end{array}

Beta Production Possibilities:

\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } \\\text { Product } X &6&4&2&0\\\text { Product } Y & 0 & 4 & 8 & 12 \end{array}

Refer to the tables.According to the concept of comparative advantage:

Quizplus · Accepted Answer

According to the concept of comparative advantage, a country should specialize in producing the good for which it has the lowest opportunity cost. In the given production possibilities tables, the opportunity cost of producing X is lower for Beta than for Alpha while the opportunity cost of producing Y is lower for Alpha than for Beta. Therefore, Beta should specialize in X and Alpha should specialize in Y. This implies that Beta should produce only X and Alpha should produce only Y, making option D the best choice.

Answer the Question on the Basis of the Following Production