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 18-acre 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 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. Zucchini Watermelon (Pounds per acre) (Pounds per acre) Elijah 12 3 Aneesha 18 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 MELON (Pounds) 90On 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 WATERMELON (Pounds) 72 54 36 18 0 90 180 270 360 450 540 630 720 810 900 ZUCCHINI (Pounds) has an absolute advantage in the production of zucchini, and has an absolute advantage in the production of watermelon. Elijah's opportunity cost of producing 1 pound of watermelon is pounds of zucchini, whereas Aneesha's opportunity cost of producing 1O 162 Elijah's PPF 144 126 108 Aneesha's PPF 90 WATERMELON (Pounds) 72 54 36 18 90 180 270 360 450 540 630 720 810 900 ZUCCHINI (Pounds) has an absolute advantage in the production of zucchini, and has an absolute advantage in the production of watermelon. Elijah's opportunity cost of producing 1 pound of watermelon is pounds of zucchini, whereas Aneesha's opportunity cost of producing 1 pound of watermelon is pounds of zucchini. Because Elijah has a opportunity cost of producing watermelon than Aneesha, has a comparative advantage in the production of watermelon, and has a comparative advantage in the production of zucchini

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Statistics The Art And Science Of Learning From Data

Authors: Alan Agresti, Christine A. Franklin

3rd Edition

9780321755940

Students also viewed these Economics questions