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2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns a 14acre plot of land. The following table shows the amount of
2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns a 14acre 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) Lot: 10 5 Ashima 18 5 On the following graph, use the blue line (circle symbol) to plot Loc's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima's PPF. 140 O 126 LOC's PPF 112 Ashima's PPF 84 70 WATERMELON (Pounds) 58 42 28 14 0 0 70 140 210 280 350 420 490 580 630 700 ZUCCHINI (Pounds)v has an absolute advantage in the production ofzucchini, and v has an absolute advantage in the production of watermelon. Loc's opportunity cost of producing 1 pound of watermelon is: pounds of zucchini, where-as Ashima's opportunity.r cost of producing 1 pound of watermelon is |:| pounds of zucchini. Because Loc has a V opportunity cost of producing watermelon than Ashima, v has a comparative advantage in the production of watermelon, and v has a comparative advantage in the production of zucchini
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