2. Comparative and absolute advantage

Tim and Alyssa 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.

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

Module Two Quiz X Tim and Alyssa 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. Com Rye (Bushels per acre) (Bushels per acre) Tim 40 Alyssa 28 On the following graph, use the blue line (circle symbol) to plot Tim's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Alyssa's PPF.Module Two Quiz O X O 100 Tim's PPF 84 72 Alyssa's PPF RYE (Bushels) 24 12 60 120 180 240 300 360 420 480 5-80 600 CORN (Bushels)Module Two Quiz X 12 60 120 180 240 300 360 420 400 540 600 CORN (Bushels) has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Tim's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Alyssa's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Tim has a opportunity cost of producing rye than Alyssa, has a comparative advantage in the production of rye, and has a comparative advantage in the production of corn. Grade It Now Save & Continue Continue without saving