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2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of
2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of watermelon and zucchini each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing watermelon or zucchini or to produce watermelon on some of the land and zucchini on the rest. Watermelon Zucchini (Pounds per acre) ( Pounds per acre) Elijah 5 Aneesha 4 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. (?) 160 144 128 Elijah's PPF 112 O Aneesha's PPF 28 8 ZUCCHINI (Pounds) 80 0 240 320 400 480 560 840 720 800 WATERMELON (Pounds) Aneesha * has an absolute advantage in the production of watermelon, and _Elijah * has an absolute advantage in the production of zucchini. Elijah's opportunity cost of producing 1 pound of zucchini is 1 pounds of watermelon, whereas Aneeshe's opportunity cost of producing 1 pound of zucchini is 2 pounds of watermelon. Because Elijah has a higher * opportunity cost of producing zucchini than Aneesha, Aneesha * has a comparative advantage in the production of zucchini, and Elijah * has a comparative advantage in the production of watermelon
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