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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  Cups  Saucer  Alpha 3 units  or 1 unit  Beta 2 units  or 4 units \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

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