Answer the Question on the Basis of the Following Information

question 48

Multiple Choice

Answer the question on the basis of the following information about the 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 these are the only two nations in the world. Singsong: 1F = 2C
Harmony: 1F = 4C
Refer to the given information.If 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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