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.