1. Comparative and absolute advantageSean and Yvette are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of theland and barley on the rest.SeanYvetteBARLEY (Bushels)200On the following graph, use the blue line (circle symbol) to plot Sean's production possibilities curve (PPC) and use the purple line (diamond symbol)to plot Yvette's PPC. Then, use the graph to answer the questions that follow.18016014012010080604020DAlfalfa(Bushels per acre)01003028200Barley(Bushels per acre)107300 400 500 600 700 800 900 1000ALFALFA (Bushels)OSean's PPCYvette's PPC? has an absolute advantage in the production of alfalfa, andSean's opportunity cost of producing 1 bushel of barley isbarley isbushels of alfalfa. Because Sean has acomparative advantage in the production of barley, andhas an absolute advantage in the production of barley.bushels of alfalfa, whereas Yvette's opportunity cost of producing 1 bushel ofopportunity cost of producing barley than Yvette,has ahas a comparative advantage in the production of alfalfa.

Absolute advantage refers to the ability to produce more goods using the same resources or same…

has an absolute advantage in the production of alfalfa, and Sean's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Sean has a comparative advantage in the production of barley, and has an absolute advantage in the production of barley. bushels of alfalfa, whereas Yvette's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Yvette, has a ▼has comparative advantage in the production of alfalfa.

has an absolute advantage in the production of alfalfa, and Sean's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Sean has a comparative advantage in the production of barley, and has an absolute advantage in the production of barley. bushels of alfalfa, whereas Yvette's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Yvette, has a ▼has comparative advantage in the production of alfalfa.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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