2. Comparative and absolute advantage Van and Amy are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer choose whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest Barley (Bushels per acre) Alfalfa (Bushels per acre) 40 28 Van 8 Amy 2 On the following graph, use the blue line (circle symbol) to plot van's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Amy's PPE 120 100 Vans PPE Amy's PPE BARLEY (Buthels) 43 24 12 D D 20 000 10 000 300 400 540 ALFALFA (uses) has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley Van's opportunity cost of producing 1 bushel of barley is bushels of alfalfa, whereas Amy's opportunity cost of producing 1 bushel of barley bushels of attaifa. Because Van tas a opportunity cost of producing barley than Amy, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa