Assume both Kansas and Illinois have 100 acres of land, and land is the only input for producing wheat and soybeans. The following table is theyield per acrein Kansas and Illinois.

Wheat Soybean

Kansas 40 24

Illinois 48 39

a)Which state has an absolute advantage in producing wheat? Which state has an absolute advantage in producing soybean?

b) If Kansas wants to produce one more unit of soybean, how much wheat must it give up?

c) If Illinois wants to produce one more unit if soybean, how much wheat must it give up?

d) Which state has a comparative advantage in producing wheat? Which state has a comparative advantage in producing soybean?

e) If trade is allowed, which crop will each state prioritize producing?