Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18acre plot of land' The following table shows the amount of

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18acre plot of land' The following table shows the amount of squash and maize each farmer can produce per year on a given acre. Each farmer chooses whether to devote a|| acres to producing squash or maize or to produce squash on some of the land and maize on the rest. Squash Maize { Pounds per acre) { Pounds per acre) Elijah 8 2 Aneesha 9 9 On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 180 O 162 Elijah's PPF 144 126 108 Aneesha's PPF 90 MAIZE (Pounds) 72 54 36 18 0 90 180 270 360 450 540 630 720 810 900 SQUASH (Pounds)V has an absolute advantage in the production of squash, and V has an absolute advantage in the production of maize. Elijah's opportunity cost of producing 1 pound of maize is pounds of squash, whereas Aneesha's opportunity cost of producing 1 pound of maize is pounds of squash. Because Elijah has a V opportunity cost of producing maize than Aneesha, V has a comparative advantage in the production of maize, and V has a comparative advantage in the production of squash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

7th edition

134738314, 9780134738116 , 978-0134738321

More Books

Students also viewed these Economics questions

Question

Is there administrative support?

Answered: 1 week ago

Question

2. Find five metaphors for communication.

Answered: 1 week ago