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2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of
2. Comparative and absolute advantage
Shen and Valerie are farmers. Each one owns a 12-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 | Rye | |
---|---|---|
(Bushels per acre) | (Bushels per acre) | |
Shen | 12 | 3 |
Valerie | 18 | 6 |
On the following graph, use the blue line (circle symbol) to plot Shen's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Valerie's PPF.
On the following graph, use the blue line (circle symbol) to plot Shen's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Valerie's PPF. 120 O 108 Shen's PPF 96 84 Valerie's PPF 72 60 RYE (Bushels) 36 24 12 60 120 180: 240 300 360 420 480 540 600 CORN (Bushels)Step by Step Solution
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