Suppose that the resource base in country x can produce either 150 units of alpha or 400 units of beta. similarly, suppose that country y's resource base is capable of producing 150 units of alpha or 300 betas. clearly, the opportunity cost of 150 alphas is lower in ▼ country x country y. Based on this result, it would be best for country upper y to concentrate on good ▼ alpha beta.

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Business

Hope Morrison

24 January, 07:50

Suppose that the resource base in country x can produce either 150 units of alpha or 400 units of beta. similarly, suppose that country y's resource base is capable of producing 150 units of alpha or 300 betas. clearly, the opportunity cost of 150 alphas is lower in ▼ country x country y. Based on this result, it would be best for country upper y to concentrate on good ▼ alpha beta.

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Roman Farmer · Answer 1

Answer: Country Y, Alpha

Explanation:

Opportunity cost is the cost of the next best alternative which is foregone. So, for country x the opportunity cost of producing 150 Alpha's is 400 Beta's foregone. While, for country Y the opportunity cost of producing 150 Alpha's is 300 Beta's foregone.

Since, Country Y has to give up less to get the same quantity of Alpha's it has a lower opportunity cost of Alpha.

Thus, it would be best for country Y to produce Alpha as it has a lower opportunity cost in Alpha compared to country x.