5. Comparative and absolute advantageCarlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the landand rye on the rest.CarlosDeborahCorn(Bushels per acre)2028Rye(Bushels per acre)47On the following graph, use the blue line (circle symbol) to plot Carlos's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Deborah's PPF. RYE (Bushels)12010896847260483624120060 120 180 240 300 360 420 480 540 600CORN (Bushels)has an absolute advantage in the production of corn, andOCarlos's opportunity cost of producing 1 bushel of rye isbushels of corn. Because Carlos has aadvantage in the production of rye, andCarlos's PPFDeborah's PPFhas an absolute advantage in the production of rye.bushels of corn, whereas Deborah's opportunity cost of producing 1 bushel of rye isopportunity cost of producing rye than Deborah,has a comparativehas a comparative advantage in the production of corn.

Given: Corn Rye Hubert 20 4 Kate 28 7

5. Comparative and absolute advantage Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Carlos Deborah Corn (Bushels per acre) 20 28 Rye (Bushels per acre) 4 7 On the following graph, use the blue line (circle symbol) to plot Carlos's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Deborah's PPF.

5. Comparative and absolute advantage Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Carlos Deborah Corn (Bushels per acre) 20 28 Rye (Bushels per acre) 4 7 On the following graph, use the blue line (circle symbol) to plot Carlos's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Deborah's PPF.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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