### Production Possibilities of David and MorganDavid and Morgan 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.#### Production Table| | Zucchini(Pounds per acre) | Watermelon(Pounds per acre) ||:-------------:|:-----------------------------:|:-------------------------------:|| **David** | 12 | 3 || **Morgan** | 18 | 6 |#### Production Possibilities Frontier (PPF) GraphOn the following graph, use the blue line (circle symbol) to plot David's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan's PPF.![Graph showing production possibilities](attachment link)Description:- **X-Axis:** Zucchini (Pounds)- **Y-Axis:** Watermelon (Pounds)- **Blue Line (Circle Symbol):** Represents David's PPF- **Purple Line (Diamond Symbol):** Represents Morgan's PPF#### Competitive Advantage Analysis- ** has an absolute advantage in the production of zucchini and ** has an absolute advantage in the production of watermelon.David's opportunity cost of producing 1 pound of watermelon is ** pounds of zucchini, whereas Morgan's opportunity cost of producing 1 pound of watermelon is ** pounds of zucchini. Because David has a ** opportunity cost of producing watermelon than Morgan, ** has a comparative advantage in the production of watermelon, and ** has a comparative advantage in the production of zucchini.### Key Terms:- **Absolute Advantage:** The ability of a party to produce more of a good or service than its competitors, using the same amount of resources.- **Comparative Advantage:** The ability of a party to produce a particular good or service at a lower opportunity cost than its competitors.This information helps in understanding the allocation of resources, production efficiency, and trade benefits between individuals or entities in economics. **Title: Economic Comparison of Crop Production: David vs. Morgan****Introduction:**David and Morgan 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.**Production Table:**| | Zucchini (Pounds per acre) | Watermelon (Pounds per acre) ||---------------|-----------------------------|-------------------------------|| David | 12 | 3 || Morgan | 18 | 6 |**Graphical Representation:**On the following graph, use the blue line (circle symbol) to plot David's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan's PPF.[Graph Image]- The X-axis represents the pounds of Zucchini, ranging from 0 to 540.- The Y-axis represents the pounds of Watermelon, ranging from 0 to 180.- David's PPF is represented by the blue line with circle symbols.- Morgan's PPF is represented by the purple line with diamond symbols.**Absolute Advantage:**- **Morgan** has an absolute advantage in the production of zucchini.- **Morgan** has an absolute advantage in the production of watermelon.**Opportunity Cost and Comparative Advantage:**David's opportunity cost of producing 1 pound of watermelon is **4** pounds of zucchini, whereas Morgan's opportunity cost of producing 1 pound of watermelon is **3** pounds of zucchini. Because David has a **higher** opportunity cost of producing watermelon than Morgan, **David** has a comparative advantage in the production of zucchini, and **Morgan** has a comparative advantage in the production of watermelon.**Conclusion:**This analysis allows us to determine the optimal production strategy for both farmers, considering their respective absolute and comparative advantages. The graphical representation further illustrates the trade-offs each farmer faces between producing zucchini and watermelon.

Absolute advantage is different from comparative advantage, which takes into account the opportunity…

David and Morgan 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 yea on a given acre. Each farmer chooses whether to devote a acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. David Morgan WATERMELON (Pounds) 180 On the following graph, use the blue line (circle symbol) to p Q David's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan's PPF. 162 144 126 100 90 72 54 36 18 0 Zucchini Watermelon (Pounds per acre) (Pounds per acre) 12 18 0 90 100 270 360 450 540 630 720 810 900 ZUCCHINI (Pounds) David's PPF A-2 Morgan's PPF A

David and Morgan 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 yea on a given acre. Each farmer chooses whether to devote a acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. David Morgan WATERMELON (Pounds) 180 On the following graph, use the blue line (circle symbol) to p Q David's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan's PPF. 162 144 126 100 90 72 54 36 18 0 Zucchini Watermelon (Pounds per acre) (Pounds per acre) 12 18 0 90 100 270 360 450 540 630 720 810 900 ZUCCHINI (Pounds) David's PPF A-2 Morgan's PPF 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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