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Loc and Ashima are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of watermelon and zucchini each farmer
Loc and Ashima are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of watermelon and zucchini each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing watermelon or zucchini or to produce watermelon on some of the land and zucchini on the rest.
Watermelon | Zucchini | |
---|---|---|
(Pounds per acre) | (Pounds per acre) | |
Loc | 28 | 7 |
Ashima | 18 | 6 |
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.
180 O 162 Loc's PPF 144 126 Ashima's PPF 108 90 ZUCCHINI (Pounds) 72 54 36 18 0 90 180 270 360 450 540 630 720 810 900 WATERMELON (Pounds)V has an absolute advantage in the production of watermelon, and V has an absolute advantage in the production of zucchini. Loc's opportunity cost of producing 1 pound of zucchini is \\: pounds of watermelon, whereas Ashima's opportunity cost of producing 1 pound of zucchini BE pounds of watermelon. Because Loc has a V opportunity cost of producing zucchini than Ashima, V has a comparative advantage in the production of zucchini, and V has a comparative advantage in the production of watermelonStep by Step Solution
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