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.
-Refer to the above information.Alpha should specialize in Y and Beta in X.

Question

Quizplus · Accepted Answer

Alpha has a comparative advantage in producing Y, and Beta has a comparative advantage in producing X, so they should specialize accordingly.

Assume That by Devoting All Its Resources to the Production