Answer the Question Using the Accompanying Cost Ratios for Two

question 19

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 = 4CIn Singsong the domestic real cost of each chicken

• A)is ½ fish.
• B)is 2 fish.
• C)increases with the level of fish caught.
• D)decreases with the level of fish caught.

---

Definitions:

Long-run Supply Function

The relationship between price and the quantity supplied that takes into account adjustments in production or the market over a longer period.

Rental Apartments

Living spaces that are available for rent, typically involving a lease agreement between the tenant and the landlord.

Inverse Demand Function

The inverse demand function expresses the price of a good as a function of the quantity demanded, illustrating the relationship between price and quantity from a demand perspective.

Tax Imposed

Refers to charges or levies placed by a government on individuals or entities, influencing economic behavior, revenue collection, and market operations.