2. Comparative and absolute advantage Dmitri and Frances are farmers. Each one owns a 20acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye (Bushels per acre) (Bushels per acre) Dmitri 40 8 Frances 28 7 0n the following graph, use the blue line (circle symbol) to plot Dmitri '5 production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Frances's PPF. zoo _o_ 130 160 _ DmItnsPPF 14o 0 :5 120 Frances's PPF 2 g 100 '13, E n: so so 4o 20 o I I I I I I I I I I o 100 200 300 400 500 500 700 300 900 1000 CORN (Bushels) V has an absolute advantage in the production of corn, and V has an absolute advantage in the production of rye. Dmitri's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Frances's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Dmitri has a v opportunity cost of producing rye than Frances, v has a comparative advantage in the production of rye, and V has a comparative advantage in the production of corn