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Assume that by devoting all of its resources to the production of x , nation Alpha can produce 4 0 units of x . By

Assume that by devoting all of its resources to the production of x, nation Alpha can produce 40 units of x. By devoting all of its resources to Y, Alpha can produce 60 Y . Comparable figures for nation Beta are 60 X and 40 Y . We can conclude that
there is no basis for mutually beneficial specialization and trade.
Alpha should speciatize in x and Bctati.Y
the terms of trade will be 3 equals ir
Aliphasthouta speconize in yandsecta in x
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