Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative and absolute advantage Jacques and Kyoko are farmers. Each one owns a 12-acre plot of land. The following table F11 former can produce per

Comparative and absolute advantage

image text in transcribed
Jacques and Kyoko are farmers. Each one owns a 12-acre plot of land. The following table F11 former can produce per year on a given acre. Each farmer chooses whether to devote all acres to produci By on some of the land and alfalfa on the rest. Barley Alfalfa (Bushels per acre) (Bushels per acre) Jacques 18 Kyoko 28 On the following graph, use the blue line (circle symbol) to plot Jacques's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Kyoko's PPF. 120 O 108 Jacques's PPF O Kyoko's PPF 8 ALFALFA (Bushels) 48 12 60 120 180 240 300 360 420 480 540 600 BARLEY (Bushels) has an absolute advantage in the production of barley, and has an absolute advantage in the production of alfalfa. Jacques's opportunity cost of producing 1 bushel of alfalfa is bushels of barley, whereas Kyoko's opportunity cost of producing 1 bushel of alfalfa is bushels of barley. Because Jacques has a opportunity cost of producing alfalfa than Kyoko, has a comparative advantage in the production of alfalfa, and has a comparative advantage in the production of barley

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

Local Disaster Resilience Administrative And Political Perspectives

Authors: Ellen Russell, Ashley D Ross

1st Edition

1135910618, 9781135910617

More Books

Students also viewed these Economics questions