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Suppose that Bianca and Rosa each own a small farm. They both produce corn and wheat. Each hour, Bianca can either produce 1 kilo of
Suppose that Bianca and Rosa each own a small farm. They both produce corn and wheat. Each hour, Bianca can either produce 1 kilo of corn or 1 kilo of wheat, and Rosa can either produce 3 kilos of corn or 2 kilos of wheat. Each person works 8 hours a day. Based on this information, who has the comparative advantage in producing wheat? Question 8 a. Rosa because her opportunity cost of producing wheat (0.67 kilos of corn) is lower than Bianca (1 kilo of corn). b. Bianca because her opportunity cost of producing wheat (1 kilo of corn) is higher than Rosa (0.67 kilos of corn). c. Rosa because her opportunity cost of producing wheat (1.5 kilos of corn) is higher than Bianca (1 kilo of corn). d. Bianca because her opportunity cost of producing wheat (1 kilo of corn) is lower than Rosa (1.5 kilos of corn)
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