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 = 2c harmony: 1f = 4c if these two nations specialize based on comparative advantage:.
a. harmony will produce chicken and singsong will catch fish.
b. singsong will produce chicken and harmony will catch fish.
c. singsong will both produce chicken and catch fish.
d. harmony will both produce chicken and catch fish.

a. harmony will produce chicken and singsong will catch fish.

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

In singsong: 1f = 2c

The opportunity cost of producing 1 fish = 2c / 1 = 2c

The opportunity cost of producing 1 chicken = 1f / 2 = 0.5f

In harmony: 1f = 4c

The opportunity cost of producing 1 fish = 4c / 1 = 4c

The opportunity cost of producing 1 chicken = 1f / 4 = 0.25f

It can be seen that singsong has a lower opportunity cost in producing fish, so it should specialise in fish.

Harmony has a comparative advantage in producing chicken, so it should specialise in chicken.

I hope my answer helps you

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