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,Cropitia 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,Cropitia 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

Cropitia should specialize in the production of ham because its opportunity cost of producing cheese is higher (1.5 pounds of ham per pound of cheese). By specializing in ham, Cropitia can trade it for cheese from Bonovia, which presumably has a lower opportunity cost for cheese.

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