Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Antonio and Caroline are farmers. Each one own a 16-acre plot of land. The following table shows the amount of rye and corn each farmer

Antonio and Caroline are farmers. Each one own a 16-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre.

image text in transcribedimage text in transcribed
1. Comparative and absolute advantage Antonio and Caroline are farmers. Each one owns a 16-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) Antonio 28 Caroline 18 On the following graph, use the blue line (circle symbol) to plot Antonio's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Caroline's PPF. ? 160 O 144 128 Antonio's PPF 112 O Bushels) 96 Caroline's PPF160 O 144 128 Antonio's PPF 112 O CORN (Bushels) 96 Caroline's PPF 80 64 48 32 16 0 80 160 240 320 400 480 560 6 640 720 800 RYE (Bushels) has an absolute advantage in the production of rye, and has an absolute advantage in the production of corn. Antonio's opportunity cost of producing 1 bushel of corn is bushels of rye, whereas Caroline's opportunity cost of producing 1 bushel of corn is bushels of rye. Because Antonio has a opportunity cost of producing corn than Caroline, has a comparative advantage in the production of corn, and has a comparative advantage in the production of rye

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

Business Law Today The Essentials

Authors: Roger LeRoy Miller

12th Edition

035703791X, 9780357037911

More Books

Students also viewed these Economics questions

Question

Repeat Prob. 11.8, but use Jacobi iteration.

Answered: 1 week ago