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 60y. comparable figures for national beta are 60x and 40y. we can conclude that:.
a. the terms of trade will be 3x equals 1y.
b. alpha should specialize in y and beta in x.
c. alpha should specialize in x and beta in y.
d. there is no basis for mutually beneficial specialization and trade.

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."