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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
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
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