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2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of
2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 20-acre 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 (Bushels per acre) 10 Rye (Bushels per acre) Gilberto 5 Juanita 40 8 on the following graph, use the blue line (circle symbol) to plot Giberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. 200 100 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF 200 180 160 Gilberto's PPF 140 120 Juanita's PPE RYE (Bushels) 100 80 60 40 20 0 0 700 000 900 1000 100 200 300 400 500 000 CORN (Bushels) 20 180 Gilberto's PPE 160 140 Juanita's PPE $20 RYE (Bushels) 100 80 60 40 20 a 0 100 200 300 700 800 900 1000 400 300 000 CORN (Bushels) has an absolute advantage in the production of rye. has an absolute advantage in the production of corn, and Gilberto's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Juanita's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Gilberto has a opportunity cost of producing rye than Juanita, has a comparative advantage in the production of rye, and has a comparative advantage in the production of com
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