Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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

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

Organizational Behavior And Management

Authors: John Ivancevich, Michael Matteson

6th Edition

0072436387, 978-0072436389

More Books

Students also viewed these Economics questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago

Question

Speak clearly and distinctly with moderate energy

Answered: 1 week ago