Specialisation and trade

The table below shows the maximum output of Microchips or Solar Panels that countries Alpha and Beta can produce with a fixed quantity of resources.

\begin{array}{|c|c|c|} \hline \text{Country} & \text{Microchips (maximum units)} & \text{Solar Panels (maximum units)} \\ \hline \text{Alpha} & 80 & 40 \\ \hline \text{Beta} & 60 & 15 \\ \hline \end{array}

According to the theory of comparative advantage, which of the following statements is correct?

Beta should specialise in Solar Panels and Alpha should specialise in Microchips.

A mutually beneficial terms of trade would be $1$ unit of Solar Panels for $3$ units of Microchips.

Alpha has a comparative advantage in both goods because it has a higher maximum output for both.

The opportunity cost of producing $1$ unit of Microchips in Beta is $4$ units of Solar Panels.

Specialisation and trade Questions

The table below shows the maximum output of Microchips or Solar Panels that countries Alpha and Beta can produce with a fixed quantity of resources.

\begin{array}{|c|c|c|} \hline \text{Country} & \text{Microchips (maximum units)} & \text{Solar Panels (maximum units)} \\ \hline \text{Alpha} & 80 & 40 \\ \hline \text{Beta} & 60 & 15 \\ \hline \end{array}

According to the theory of comparative advantage, which of the following statements is correct?

Beta should specialise in Solar Panels and Alpha should specialise in Microchips.

A mutually beneficial terms of trade would be $1$ unit of Solar Panels for $3$ units of Microchips.

Alpha has a comparative advantage in both goods because it has a higher maximum output for both.

The opportunity cost of producing $1$ unit of Microchips in Beta is $4$ units of Solar Panels.