2. Comparative and absolute advantageLoc and Ashima are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini onsome of the land and watermelon on the rest.Loc(spunaAshimaOn 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.14012611298Zucchini(Pounds per acre)101884Watermelon(Pounds per acre)56Loc's PPFAshima's PPF?A-ZbongoA+ WATERMELON (Pounds)140126112988470564228140070 140 210 280 350 420 490 560 630 700ZUCCHINI (Pounds)Loc's PPFLoc's opportunity cost of producing 1 pound of watermelon iswatermelon ispounds of zucchini. Because Loc has aa comparative advantage in the production of watermelon, andAshima's PPFhas an absolute advantage in the production of zucchini, and?has an absolute advantage in the production of watermelon.pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound ofopportunity cost of producing watermelon than Ashima,hashas a comparative advantage in the production of zucchini.A-ZbongoA+

2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns a 14-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. Loc Ashima 140 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. 126 112 98 Zucchini (Pounds per acre) 10 18 84 Watermelon (Pounds per acre) 5 6 O Loc's PPF Ashima's PPF (?) A-Z (( bongo A+

2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns a 14-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. Loc Ashima 140 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. 126 112 98 Zucchini (Pounds per acre) 10 18 84 Watermelon (Pounds per acre) 5 6 O Loc's PPF Ashima's PPF (?) A-Z (( bongo A+

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4.
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