Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 . Comparative and absolute advantage Darnell and Eleanor are farmers. Each one owns a 12-hectare plot of land. The following table shows the amount
1 . Comparative and absolute advantage
Darnell and Eleanor are farmers. Each one owns a 12-hectare plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given hectare. Each farmer chooses whether to devote all hectares to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest.
Barley | Alfalfa | |
---|---|---|
(Bushels per hectare) | (Bushels per hectare) | |
Darnell | 40 | 8 |
Eleanor | 28 | 7 |
On the following graph, use the blue line (circle symbol) to plot Darnell's production possibilities curve (PPC), and use the purple line (diamond symbol) to plot Eleanor's PPC.
\fCandonia Lamponia 32 32 28 28 24 PPC 24 20 20 16 16 TEA (Millions of kilograms) TEA (Millions of kilograms) 12 12 PPC 8 A 8 A 4 0 0 4 8 12 16 20 24 28 32 4 8 12 16 20 24 28 32 LEMONS (Millions of kilograms) LEMONS (Millions of kilograms)Candonia 32 28 Consumption After Trade 24 PPC 20 16 TEA (Millions of kilograms) 12 8 A 4 0 0 4 8 12 16 20 24 28 32 LEMONS (Millions of kilograms)Lamponia 32 -+ 28 Consumption After Trade 24 20 16 TEA (Millions of kilograms) 12 PPC 8 4 0 4 8 12 16 20 24 28 32 LEMONS (Millions of kilograms)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started