2. Comparative and absolute advantageElijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of squash and maize each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing squash or maize or to produce squash on some of theland and maize on the rest.ElijahAneeshaMAIZE (Pounds)On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Aneesha's PPF.1601441281129680644832160Squash(Pounds per acre)8280Maize(Pounds per acre)8780 160 240 320 400 480 560 640 720 800SQUASH (Pounds)Elijah's PPFElijah's opportunity cost of producing 1 pound of maize ismaize ispounds of squash. Because Elijah has acomparative advantage in the production of maize, andAneesha's PPFhas an absolute advantage in the production of squash, and?has an absolute advantage in the production of maize.pounds of squash, whereas Aneesha's opportunity cost of producing 1 pound ofopportunity cost of producing maize than Aneesha,has ahas a comparative advantage in the production of squash.

A production possibility frontier (PPF) is a graphical representation showing the potential output…

2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of squash and maize each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing squash or maize or to produce squash on some of the land and maize on the rest. Elijah Aneesha MAIZE (Pounds) On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 160 144 128 112 96 80 64 48 32 16 Squash Maize (Pounds per acre) (Pounds per acre) 8 8 28 0 7 080 160 240 320 400 480 560 640 720 800 SQUASH (Pounds) Elijah's PPF Elijah's opportunity cost of producing 1 pound of maize is maize is pounds of squash. Because Elijah has a comparative advantage in the production of maize, and Aneesha's PPF has an absolute advantage in the production of squash, and ? has an absolute advantage in the production of maize. pounds of squash, whereas Aneesha's opportunity cost of producing 1 pound of opportunity cost of producing maize than Aneesha, ▼ has a has a comparative advantage in the production of squash.

2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of squash and maize each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing squash or maize or to produce squash on some of the land and maize on the rest. Elijah Aneesha MAIZE (Pounds) On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 160 144 128 112 96 80 64 48 32 16 Squash Maize (Pounds per acre) (Pounds per acre) 8 8 28 0 7 080 160 240 320 400 480 560 640 720 800 SQUASH (Pounds) Elijah's PPF Elijah's opportunity cost of producing 1 pound of maize is maize is pounds of squash. Because Elijah has a comparative advantage in the production of maize, and Aneesha's PPF has an absolute advantage in the production of squash, and ? has an absolute advantage in the production of maize. pounds of squash, whereas Aneesha's opportunity cost of producing 1 pound of opportunity cost of producing maize than Aneesha, ▼ has a has a comparative advantage in the production of squash.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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