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kap26 [50]
2 years ago
7

uppose that the resource base in Country X can produce either 100 units of alpha or 300 units of beta. Similarly, suppose that C

ountry Y's resource base is capable of producing 100 units of alpha or 200 betas. Clearly, the opportunity cost of 100 alphas is lower in (1) ________ Based on this result, it would be best for Country X to concentrate on good (2) ________
Business
1 answer:
anastassius [24]2 years ago
7 0

Answer:

y

beta

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Opportunity cost of country X in producing alpha = 300 / 100 = 3 units of beta

Opportunity cost of country Y in producing alpha = 200 /100 = 2 units of beta

Y has a comparative advantage in the production of alpha

Opportunity cost of country X in producing beta = 100/ 300 = 0.3

Opportunity cost of country Y in producing beta = 100/200 = 0.5

X has a comparative advantage in the production of BETA

alpha 3 2

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