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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: [tex]1 F = 2 C[/tex]
Harmony: [tex]1 F = 4 C[/tex]

In Singsong, the domestic real cost of each chicken:

A. Decreases with the level of fish caught.
B. Increases with the level of fish caught.
C. Is [tex]\frac{1}{2}[/tex] fish.
D. Is 2 fish.



Answer :

GinnyAnswer
To determine the domestic real cost of each chicken in Singsong, we'll use the given cost ratio between fish ([tex]$F$[/tex]) and chicken (C).

In Singsong:
- The ratio is [tex]$1 F = 2 C$[/tex]

This means that one fish is equivalent to two chickens. Conversely, we can express the cost of one chicken in terms of fish.

Since [tex]$1 F = 2 C$[/tex], one chicken ([tex]$1 C$[/tex]) is half of that in terms of fish:
[tex]\[ 1 C = \frac{1}{2} F \][/tex]

Therefore, the domestic real cost of each chicken in Singsong is:
[tex]\[ 1 C = \frac{1}{2} F \][/tex]

So, the correct answer is:
[tex]\[ \text{is } \frac{1}{2} \text{ fish}. \][/tex]

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