Opportunity Cost in Trade Specialization

Steps:

• Country specializes fully in Y, using all resources for Y production.
• To import more X, it exports additional Y obtained from its production.
• Exporting more Y reduces the amount of Y left for domestic use.
• Opportunity cost of extra X imports is thus the forgone domestic Y consumption.

Why C is correct:

• Opportunity cost is the next best alternative forgone (per economic definition); here, it's domestic Y consumption sacrificed for trade.

Why the others are wrong:

• A: Country produces no X, so no domestic resources are used for X.
• B: Production of Y remains at maximum; only consumption falls due to exports.
• D: Total resources for Y are unchanged; reallocation isn't required since specialization is complete.

Final answer: C