Answer the Question Using the Accompanying Cost Ratios for Two

question 154

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 = 4CIf these two nations specialize based on comparative advantage,

• A)Singsong will both produce chicken and catch fish.
• B)Harmony will both produce chicken and catch fish.
• C)Harmony will produce chicken and Singsong will catch fish.
• D)Singsong will produce chicken and Harmony will catch fish.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Costs

The monetary value associated with the consumption of resources, such as production, operations, or acquisition expenses.

Unhealthy Rivalries

Competitive relationships that can have negative effects on individuals or groups, including stress, decreased cooperation, and conflict.

Work Process

The sequence of tasks or activities that are undertaken to transform inputs (resources, materials, information) into outputs (products, services).