2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns an 18-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 WATERMELON (Pounds) Ashima 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. 180 162 144 126 108 90 72 54 36 18 0 Zucchini (Pounds per acre) 28 18 0 zucchini. Watermelon (Pounds per acre) 7 6 90 180 270 360 450 540 630 720 810 ZUCCHINI (Pounds) Loc's opportunity cost of producing 1 pound of watermelon is of watermelon is 900 Loc's PPF Ashima's PPF has an absolute advantage in the production of zucchini, and ? pounds of zucchini. Because Loc has al has a comparative advantage in the production of watermelon, and has an absolute advantage in the production of watermelon. pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound opportunity cost of producing watermelon than Ashima, has a comparative advantage in the production of
2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns an 18-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 WATERMELON (Pounds) Ashima 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. 180 162 144 126 108 90 72 54 36 18 0 Zucchini (Pounds per acre) 28 18 0 zucchini. Watermelon (Pounds per acre) 7 6 90 180 270 360 450 540 630 720 810 ZUCCHINI (Pounds) Loc's opportunity cost of producing 1 pound of watermelon is of watermelon is 900 Loc's PPF Ashima's PPF has an absolute advantage in the production of zucchini, and ? pounds of zucchini. Because Loc has al has a comparative advantage in the production of watermelon, and has an absolute advantage in the production of watermelon. pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound opportunity cost of producing watermelon than Ashima, has a comparative advantage in the production of
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Could you please help me answer these 3 questions please including the graph
Transcribed Image Text:2. Comparative and absolute advantage
Loc and Ashima are farmers. Each one owns an 18-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
WATERMELON (Pounds)
Ashima
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
162
144
126
108
90
72
54
36
18
0
Zucchini
(Pounds per acre)
28
18
0
zucchini.
Watermelon
(Pounds per acre)
7
6
90 180 270 360 450 540 630 720 810
ZUCCHINI (Pounds)
Loc's opportunity cost of producing 1 pound of watermelon is
of watermelon is
900
Loc's PPF
Ashima's PPF
has an absolute advantage in the production of zucchini, and
?
pounds of zucchini. Because Loc has a
has a comparative advantage in the production of watermelon, and
has an absolute advantage in the production of watermelon.
pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound
opportunity cost of producing watermelon than Ashima,
has a comparative advantage in the production of
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