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Kelen and Chris produce rice and wheat. In an hour, Kelen can produce 1 unit of wheat and 1 unit of rice, while Chris can
Kelen and Chris produce rice and wheat. In an hour, Kelen can produce 1 unit of wheat and 1 unit of rice, while Chris can produce 2 units of wheat and 3 units of rice. They each work 10 hours in a day. a) Who has absolute advantage in producing wheat? Who has an absolute advantage in producing rice? Explain. (4) b) Who has comparative advantage in producing wheat? Who has a comparative advantage in producing rice? Draw a production possibility frontier for Kelen and Chris assuming that each spends same number of hours each day as the other in producing wheat and rice
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