Answer the next question on the basis of the following information about the opportunity costs of 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. Finally, the opportunity costs of fish in terms of chicken are: Singsong: 1F = 2C. Harmony: 1F = 4C If these two nations specialize based on comparative advantage, then

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


Answer: D

Economics

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