Images are attached Hubert and Kate are farmers. Each one owns a 12-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.AlfalfaBarley(Bushels per acre)(Bushels per acre)Hubert408Kate287On the following graph, use the blue line (circle symbol) to plot Hubert's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Kate's PPF.120108Hubert's PPF9884Kate's PPF7236241260120180240 300 300420480540600ALFALFA (Bushels)BARLEY (Bushels) Hubert's opportunity cost of producing 1 bushel of barley isbushels of alfalfa, whereas Kate's opportunity cost of producing 1 bushel ofbarley isbushels of alfalfa.Because Hubert has av opportunity cost of producing barley than Kate,has a comparative advantage in the production ofbarley, andhas a comparative advantage in the production of alfalfa.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hubert and Kate are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can
produce 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 the
land and barley on the rest.
Alfalfa
Barley
(Bushels per acre)
(Bushels per acre)
Hubert
40
8
Kate
28
7
On the following graph, use the blue line (circle symbol) to plot Hubert's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Kate's PPF.
120
108
Hubert's PPF
98
84
Kate's PPF
72
36
24
12
60
120
180
240 300 300
420
480
540
600
ALFALFA (Bushels)
BARLEY (Bushels)

Hubert's opportunity cost of producing 1 bushel of barley is
bushels of alfalfa, whereas Kate's opportunity cost of producing 1 bushel of
barley is
bushels of alfalfa.
Because Hubert has a
v opportunity cost of producing barley than Kate,
has a comparative advantage in the production of
barley, and
has a comparative advantage in the production of alfalfa.

Expert Solution

Step 1

Hubert's opportunity cost of producing 1 bushel of barley =40/8 = 5 bushels of alfalfa

Kate's opportunity cost of producing 1 bushel of barley = 28/7 = 4 bushels of alfalfa

Hubert has a higher opportunity cost of producing barley than Kate, Kate has a comparative advantage in barley production and Huber has a comparative advantage in alfalfa production.

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