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 cheese is 1.5 pounds of ham.Based on this information,if Bonovia and Cropitia want to trade,Bonovia should specialize in the production of
A) ham and import cheese.
B) cheese and import ham.
C) both goods and import neither good.
D) neither good and import both goods..

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 cheese is 1.5 pounds of ham.Based on this information,if Bonovia and Cropitia want to trade,Bonovia should specialize in the production of
A) ham and import cheese. 
B) cheese and import ham. 
C) both goods and import neither good. 
D) neither good and import both goods..

Quizplus · Accepted Answer

According to the graph, Bonovia has a higher opportunity cost for producing cheese (2 pounds of ham) compared to Cropitia (1.5 pounds of ham). Therefore, it makes sense for Bonovia to specialize in producing ham and import cheese from Cropitia, which has a lower opportunity cost for producing cheese. This way, both countries can benefit from trade through comparative advantage.

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