Question
Cain and Ikuho are farmers. Each one owns a 5 hectare plot of land. The following table shows the amount of oilseed rape and maize
Cain and Ikuho are farmers. Each one owns a 5 hectare plot of land. The following table shows the amount of oilseed rape and maize each farmer can produce per year on a given hectare. Both farmers can choose whether to devote all 5 hectares to producing oilseed rape only, to producing maize only, or to produce both oilseed rape and maize.
Oilseed rape (Tonnes per hectare) | Maize (Tonnes per hectare) | |
cain | 4 | 12 |
Ikuho | 30 | 15 |
Fill in the table below with Cain's and Ikuho's production possibilities for their plots of land.
Cain's Production Possibilities | Ikuho's Production Possibilities | ||||
Land combinations | Oilseed rape | Maize | Land Combinations | Oilseed rape | Maize |
5 hectares of oilseed rape, 0 hectares of maize | Answer | Answer | 5 hectares of oilseed rape, 0 hectares of maize | Answer | Answer |
4 hectares of oilseed rape, 1 hectare of maize | Answer | Answer | 4 hectares of oilseed rape, 1 hectare of maize | Answer | Answer |
3 hectares of oilseed rape, 2 hectares of maize | Answer | Answer | 3 hectares of oilseed rape, 2 hectares of maize | Answer | Answer |
2 hectares of oilseed rape, 3 hectares of maize | Answer | Answer | 2 hectares of oilseed rape, 3 hectares of maize | Answer | Answer |
1 hectare of oilseed rape, 4 hectares of maize | Answer | Answer | 1 hectare of oilseed rape, 4 hectares of maize | Answer | Answer |
0 hectares of oilseed rape, 5 hectares of maize | Answer | Answer | 0 hectares of oilseed rape, 5 hectares of maize | Answer | Answer |
Answer, has an absolute advantage in the production of oilseed rape and Answer, Cain nor Ikuho has an absolute advantage in the production of maize.
Cain's opportunity cost of producing one tonne of maize is Answer, while Ikuho's opportunity cost of producing one tonne of maize is Answer. Because Cain has a Answer cost of producing maize than Ikuho, Answer has a comparative advantage in the production of maize, and Answer has a comparative advantage in the production of oilseed rape.
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