Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charles and Dina are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer

image text in transcribedimage text in transcribedimage text in transcribed

Charles and Dina are farmers. Each one owns a 20-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 chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Charles 20 5 Dina 50 10 On the following graph, use the blue line (circle symbol) to plot Charles's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Dina's PPF. 200 180 Charles's PPF 160 140 120 Dina's PPF BARLEY (Bushels) 100 80 60 40 20 0 0 100 200 800 900 1000 300 400 500 600 700 ALFALFA (Bushels) has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Charles's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Charles has a bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Dina, has a has a comparative advantage in the production of alfalfa. comparative advantage in the production of barley, and

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 Of Sport Management

Authors: John Beech, Simon Chadwick

2nd Edition

027372133X, 9780273721338

More Books

Students also viewed these Accounting questions

Question

What is basic precision, and how is it determined?

Answered: 1 week ago

Question

=+22. Energy investment decisions.

Answered: 1 week ago