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The Following Information Is About the Cost Ratios for Two

Question 52

Multiple Choice

The following information is about the cost ratios for two products-fish (F) and chicken (C) -in Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world.If in Singsong: 1F = 2C and, in Harmony: 1F = 4C then, in Singsong the domestic real cost of each chicken:


A) is 1/2 a fish.
B) is 2 fish.
C) increases with the level of fish caught.
D) decreases with the level of fish caught.

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