Question

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 .

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.