Figure 3-23
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 3-23.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 3-23
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 3-23.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 ham is 0.3 pounds of cheese, so any trade rate above 0.3 pounds of cheese per pound of ham benefits Cropitia. All options (A, B, C) are above 0.3, allowing both nations to gain from trade.

Figure 3-23 the Graph Below Represents the Various Combinations of Ham and Ham