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Lorenzo and Neha 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.

Lorenzo and Neha 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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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based off first pic , how will you fill in the blanks for the other pic

has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. bushels of alfalfa, whereas Neha's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Neha, Lorenzo's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Lorenzo has a has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa.
Transcribed Image Text:has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. bushels of alfalfa, whereas Neha's opportunity cost of producing 1 bushel of opportunity cost of producing barley than Neha, Lorenzo's opportunity cost of producing 1 bushel of barley is barley is bushels of alfalfa. Because Lorenzo has a has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa.
5. Comparative and absolute advantage Lorenzo and Neha 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) Lorenzo 40 8 Neha 28 7 On the following graph, use the blue line (circle symbol) to plot Lorenzo's production possibilities curve (PPC), and use the purple line (diamond symbol) to plot Neha's PPC.
Transcribed Image Text:5. Comparative and absolute advantage Lorenzo and Neha 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) Lorenzo 40 8 Neha 28 7 On the following graph, use the blue line (circle symbol) to plot Lorenzo's production possibilities curve (PPC), and use the purple line (diamond symbol) to plot Neha's PPC.
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