GAGE MINDIAP Homework (Ch 03) Attempts Keep the Highest: 13 2. Comparative and absolute advantage Kevin and Maria 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 choose 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 On the following graph, use the blue line (cirde symbol) to plot Kevin's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Maria's PPE 180 10 Kevi's PPE 100 -O Maria's PPF 100 BARLEY (Bushels) 2003 OD ALFALFA Bushels) has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Kevin pportunity cost of producing 1 bushel of barley is Maria bushels of ww. Because Kevin has a ve advantage in the production of barley, and bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of oportunity cost of producing barley than Maria, hasa has a comparative advantage in the production of alfa. Grade it Now Save & Continue Continue without saving has an absolute advantage in the production of barley. has an absolute advantage in the production of alfalfa, and Ibu Kevin's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. 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Because Kevin has a opportunity cost of producing barley than Maria, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of alfalfa, and has an absolute advantage in the pro Maria pf barley hasa Kevin's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Kevin has a comparative advantage in the production of barley, and Kevin bushels of alfalfa, whereas Maria's opportunity cost Jcing 1 bushel of opportunity cost of producing barley than Maria, has a comparative advantage in the production of alfalfa Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of higher ind has an absolute advantage in the production of barley lower Kevin's opportunity cost of producing 1 bushel of barley is barley al bushels of alfalfa. Because Kevin has a comparative advantage in the production of barley, and bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Maria, has a has a comparative advantage in the production of all Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Kevin Kevin's opportunity cost of producing 1 bushel of barley bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of Maria barley is bushels of alfalfa. Because Kevin hal opportunity cost of producing barley than Maria, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa. Grade It Now Save & Continue Continue without saving GAGE MINDIAP Homework (Ch 03) Attempts Keep the Highest: 13 2. Comparative and absolute advantage Kevin and Maria 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 choose 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 On the following graph, use the blue line (cirde symbol) to plot Kevin's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Maria's PPE 180 10 Kevi's PPE 100 -O Maria's PPF 100 BARLEY (Bushels) 2003 OD ALFALFA Bushels) has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Kevin pportunity cost of producing 1 bushel of barley is Maria bushels of ww. Because Kevin has a ve advantage in the production of barley, and bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of oportunity cost of producing barley than Maria, hasa has a comparative advantage in the production of alfa. Grade it Now Save & Continue Continue without saving has an absolute advantage in the production of barley. has an absolute advantage in the production of alfalfa, and Ibu Kevin's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Kevin has a comparative advantage in the production of barley, and Maria alfalfa, whereas Maria's opportunity cost of producing 1 bushel of Kevin nity cost of producing barley than Maria, has a has rative advantage in the production of alfalfa Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of higher ind has an absolute advantage in the production of barley, lower Kevin's opportunity cost of producing 1 bushel of barley is bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushal of barley is bushels of alfalfa. Because Kevin has a opportunity cost of producing barley than Maria, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of alfalfa, and has an absolute advantage in the pro Maria pf barley hasa Kevin's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Kevin has a comparative advantage in the production of barley, and Kevin bushels of alfalfa, whereas Maria's opportunity cost Jcing 1 bushel of opportunity cost of producing barley than Maria, has a comparative advantage in the production of alfalfa Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of higher ind has an absolute advantage in the production of barley lower Kevin's opportunity cost of producing 1 bushel of barley is barley al bushels of alfalfa. Because Kevin has a comparative advantage in the production of barley, and bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Maria, has a has a comparative advantage in the production of all Grade It Now Save & Continue Continue without saving has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Kevin Kevin's opportunity cost of producing 1 bushel of barley bushels of alfalfa, whereas Maria's opportunity cost of producing 1 bushel of Maria barley is bushels of alfalfa. Because Kevin hal opportunity cost of producing barley than Maria, has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa. Grade It Now Save & Continue Continue without saving