Suppose Both Alpha and Beta Has 10 Units of Economic

question 151

Essay

Suppose both Alpha and Beta has 10 units of economic resource.
One unit of economic resource can produce $\begin{array} { l l l l } & \text { Cups } & & \text { Saucer } \\\text { Alpha } & 3 \text { units } & \text { or } & 1 \text { unit } \\\text { Beta } & 2 \text { units } & \text { or } & 4 \text { units }\end{array}$ a) What is the opportunity cost of 1 cup for Alpha?
b) What is the opportunity cost of 1 saucer for Beta?
c) If Alpha and Beta are allow to trade, would Alpha specialize in the production of cups or saucer? Explain

---

Definitions:

Reading

The process of decoding symbols, such as letters and words, to derive meaning, a fundamental skill for acquiring knowledge and information.

Mental Set

A frame of mind involving an established way of thinking about a problem or situation, which can both aid and hinder problem-solving.

Conventional Use

The traditional or widespread accepted use or application of an object, concept, or procedure within a culture or community.

Plumber

A professional specializing in installing and maintaining systems used for potable (drinking) water, sewage, and drainage.