Question
Loc and Ashima are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer
Loc and Ashima are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.
Zucchini | Watermelon | |
---|---|---|
(Pounds per acre) | (Pounds per acre) | |
Loc | 6 | 6 |
Ashima | 20 | 5 |
On the following graph, use the blue line (circle symbol) to plot Loc's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima's PPF.
Loc's PPFAshima's PPF0801602403204004805606407208001601441281129680644832160WATERMELON (Pounds)ZUCCHINI (Pounds)
has an absolute advantage in the production of zucchini, and has an absolute advantage in the production of watermelon.
Loc's opportunity cost of producing 1 pound of watermelon is
pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound of watermelon is
pounds of zucchini. Because Loc has a opportunity cost of producing watermelon than Ashima, has a comparative advantage in the production of watermelon, and has a comparative advantage in the production of zucchini.
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