Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.

-Refer to Figure 3-11.In the nation of Cropitia,the opportunity cost of a pound of ham is 0.3 pounds of cheese.Bonovia and Cropitia both can gain from trading with one another if one pound of ham trades for
A) 0.40 pounds of cheese.
B) 0.55 pounds of cheese.
C) 0.75 pounds of cheese.
D) All of the above are correct.

Question

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.
 
-Refer to Figure 3-11.In the nation of Cropitia,the opportunity cost of a pound of ham is 0.3 pounds of cheese.Bonovia and Cropitia both can gain from trading with one another if one pound of ham trades for
A) 0.40 pounds of cheese. 
B) 0.55 pounds of cheese. 
C) 0.75 pounds of cheese. 
D) All of the above are correct.

Quizplus · Accepted Answer

Cropitia's opportunity cost for 1 pound of ham is 0.3 pounds of cheese. For trade to be beneficial, the trade price must be between the opportunity costs of the two countries. Since all options (0.40, 0.55, and 0.75 pounds of cheese) are greater than 0.3, they all represent potential beneficial trade terms for Cropitia.

Figure 3-11 the Graph Below Represents the Various Combinations of Ham and Ham