2. Comparative and absolute advantageGilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest. for the drop down box selections. The option for first is Juanita or Gilberto, for the second its also Juanita or Gilberto, for third its lower or higher, for fourth its Juanita or Gilberto, and for 5th its also Juanita or Gilberto On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Juanita's PPF.200180Gilberto's PPF160140120Juanita's PPF10080604020100200300400 500600 700800900 1000RYE (Bushels)▼ has an absolute advantage in the production of rye, andv has an absolute advantage in the production of corn.Gilberto's opportunity cost of producing 1 bushel of corn isbushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corisbushels of rye. Because Gilberto has aopportunity cost of producing corn than Juanita,has a comparativeadvantage in the production of corn, andv has a comparative advantage in the production of rye.(sja ys ng) NYO) RyeCorn(Bushels per acre)(Bushels per acre)Gilberto204Juanita28On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Juanita's PPF.200180Gilberto's PPF160140120Juanita's PPF10080604020100 200300400 500600 700800900 1000RYE (Bushels)CORN (Bushels)

Answered: 2. Comparative and absolute advantage…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Comparative and absolute advantage

Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.

for the drop down box selections. The option for first is Juanita or Gilberto, for the second its also Juanita or Gilberto, for third its lower or higher, for fourth its Juanita or Gilberto, and for 5th its also Juanita or Gilberto

On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Juanita's PPF.
200
180
Gilberto's PPF
160
140
120
Juanita's PPF
100
80
60
40
20
100
200
300
400 500
600 700
800
900 1000
RYE (Bushels)
▼ has an absolute advantage in the production of rye, and
v has an absolute advantage in the production of corn.
Gilberto's opportunity cost of producing 1 bushel of corn is
bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of cor
is
bushels of rye. Because Gilberto has a
opportunity cost of producing corn than Juanita,
has a comparative
advantage in the production of corn, and
v has a comparative advantage in the production of rye.
(sja ys ng) NYO)

Rye
Corn
(Bushels per acre)
(Bushels per acre)
Gilberto
20
4
Juanita
28
On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Juanita's PPF.
200
180
Gilberto's PPF
160
140
120
Juanita's PPF
100
80
60
40
20
100 200
300
400 500
600 700
800
900 1000
RYE (Bushels)
CORN (Bushels)

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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