Economics: Opportunity Cost

Producer Food Shelter

Rochelle 200 50

Larry 150 30

Above we have information for two different producers, Rochelle and Larry, who can each produce food, shelter, or some combination of the two using

only 1 unit of labor and 50 units of capital (each).

Calculate the opportunity cost of producing one more unit of food for Rochelle.Be sure to include the units her opportunity cost is measured in.

Calculate the opportunity cost of producing one more unit of food for Larry.Be sure to include the units his opportunity cost is measured in.

If comparative advantage exists when a producer has the lowest opportunity cost, who has a comparative advantage in the production of food?