Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The
production-possibilities schedules in the table below describe their potential output in tons per year.
(a) What is the opportunity cost of pearls on each island (before trade)?
(b) Which island has a comparative advantage in pineapple production? Please explain your answer
A: BEFORE TRADE: Alpha: Opportunity Cost= 12/30=0.4 the opportunity cost of pearl per pineapple in alpha is 0.4 Beta:... View the full answer