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Eric and Ginny are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer
Eric and Ginny 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) Eric 14 7 Ginny 30 6 On the following graph, use the blue line ( circle symbol) to plot Eric's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ginny's PPF. 200 O 180 Eric's PPF 160 140 120 Ginny's PPF BARLEY (Bushels) 100 80 60 40 20 0 0 100 200 300 400 500 600 700 800 900 1000 ALFALFA (Bushels)'V' has an absolute advantage in the production of alfalfa, and '1' has an absolute advantage in the production of barley. Eric's opportunity cost of producing 1 bushel of barley is ':| bushels of alfalfa, whereas Ginny's opportunity cost of producing 1 bushel of barley is ':] bushels of alfalfa. Because Eric has a V opportunity cost of producing barley than Ginny, V has a comparative advantage in the production of barley, and "V has a comparative advantage in the production of alfalfa
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