Answer the Question Using the Accompanying Cost Ratios for Two

question 230

Multiple Choice

Answer the question using the accompanying cost ratios for two products, fish (F) and chicken (C) , in countries Singsong and Harmony. Assume that production occurs under conditions of constant costs and that these are the only two nations in the world.Singsong: 1F = 2CHarmony: 1F = 4CWhich one of the following would not be feasible terms for trade between Singsong and Harmony?

• A)1 fish for 2½ chicken
• B)1 fish for 3 chicken
• C)1 chicken for 1/5 of a fish
• D)1 chicken for 1/3 of a fish

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