Maximum Feasible Hourly Production Rates (in Tons) of Either Knives or Forks Using All Available Resources Product Knives Forks Country Alpha 9 6 Country Beta 3 12 Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then Select one: A. Beta should produce both items. B. Alpha should specialize in knives and Beta should specialize in forks. C. Alpha should specialize in producing both items. D. Alpha should specialize in forks and Beta should specialize in knives. Maximum Feasible Hourly Production Rates (in Tons) of EitherKnives or Forks Using All Available ResourcesProductKnivesForksCountry Alpha96Country Beta312Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based oncomparative advantage, then.Select one:OA. Beta should produce both items.B. Alpha should specialize in knives and Beta should specialize in forks.C. Alpha should specialize in producing both items.OD. Alpha should specialize in forks and Beta should specialize in knives.

Opportunity cost is the value of next best alternative which has been forgone whenever a particular…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Maximum Feasible Hourly Production Rates (in Tons) of Either Knives or Forks Using All Available Resources Product Knives Forks Country Alpha 9 6 Country Beta 3 12 Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then Select one: A. Beta should produce both items. B. Alpha should specialize in knives and Beta should specialize in forks. C. Alpha should specialize in producing both items. D. Alpha should specialize in forks and Beta should specialize in knives.

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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