Assume that two countries Alpha and Beta use a variety of inputs in their production Alpha exports excavating equipment and imports solar cells. Assume furthermore no economies of scale. Select the correct statement from the ones below:Even though there is trade, Alpha has a lower opportunity cost for excavatingIf the countries did not trade, Alpha would have a lower opportunity cost for excavatingNeither country can consume at a point outside its production possibility frontier.Alpha avoids producing solar cells while B avoids producing no excavating

Opportunity Cost refers to the next best alternative forgone.

Answered: Assume that two countries Alpha and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that two countries Alpha and Beta use a variety of inputs in their production Alpha exports excavating equipment and imports solar cells. Assume furthermore no economies of scale. Select the correct statement from the ones below:

Even though there is trade, Alpha has a lower opportunity cost for excavating
If the countries did not trade, Alpha would have a lower opportunity cost for excavating
Neither country can consume at a point outside its production possibility frontier.
Alpha avoids producing solar cells while B avoids producing no excavating

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