2. Comparative and absolute advantage

Raphael and Susan are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.

Rye Corn

(Bushels per acre) (Bushels per acre)

Raphael 40 8

Susan 28 7

On the following graph, use the blue line (circle symbol) to plot Raphael's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Susan's PPF.

________Q1_______has an absolute advantage in the production of rye, and_____Q2__________ has an absolute advantage in the production of corn.

Raphael's opportunity cost of producing 1 bushel of corn is__________Q3__________ bushels of rye, whereas Susan's opportunity cost of producing 1 bushel of corn is_________Q4__________ bushels of rye. Because Raphael has a _______Q5_________ opportunity cost of producing corn than Susan,______Q6______ has a comparative advantage in the production of corn, and_________Q7___________ has a comparative advantage in the production of rye.