RYE (Bushels)1801601401201008060402000 100 200 300 400 500 600 700 800 900 1000CORN (Bushels)has an absolute advantage in the production of corn, andBob's opportunity cost of producing 1 bushel of rye isbushels of corn. Because Bob has aproduction of rye, andhas a comparative advantageBob's PPFCho's PPFhas an absolute advantage in the production of rye.bushels of corn, whereas Cho's opportunity cost of producing 1 bushel of rye isopportunity cost of producing rye than Cho, has a comparative advantage in thein the production of corn. Bob and Cho are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce peryear 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 therest.CornRye(Bushels per acre)(Bushels per acre)Bob105Cho408On the following graph, use the blue line (circle symbol) to plot Bob's production possibilities frontier (PPF), and use the purple line (diamond symbol)to plot Cho's PPF.200Bob's PPF180160F30+F4HrF5MF71F8#F9CIF10

A country or an individual is said to have a comparative advantage in a good if it can produce the…

RYE (Bushels) 180 160 140 120 100 80 60 40 20 0 0 100 200 300 400 500 600 700 800 900 1000 CORN (Bushels) has an absolute advantage in the production of corn, and Bob's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Bob has a production of rye, and has a comparative advantage Bob's PPF Cho's PPF has an absolute advantage in the production of rye. bushels of corn, whereas Cho's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Cho, has a comparative advantage in the in the production of corn.

RYE (Bushels) 180 160 140 120 100 80 60 40 20 0 0 100 200 300 400 500 600 700 800 900 1000 CORN (Bushels) has an absolute advantage in the production of corn, and Bob's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Bob has a production of rye, and has a comparative advantage Bob's PPF Cho's PPF has an absolute advantage in the production of rye. bushels of corn, whereas Cho's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Cho, has a comparative advantage in the in the production of corn.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A worker in country A can produce either 5 computers or 45 tons of rice, while a worker in country B canproduce either 7 computers or 42 tons of rice. a. Graph the production possibilities curve for each country. On which point of the curve would eachcountry produce if the workers spent half of their time producing each good? b. Which country has absolute advantage? Which country has comparative advantage? In theproduction of rise Country A absolute advantage c. If there was trade, which country would specialize in the production of rice? d. At what price of computers would the countries agree to trade?
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An automobile company has two factories, one in Vietnam and one in Australia, each with the same number of workers. The Vietnamese factory can produce either 150 engines or 100 transmissions per day. The Australian factory can produce either 200 engines or 150 transmissions per day. A. Which factory has an advantage is irrelevant since the theory of comparative advantage only applies to countries, not companies. B. The Australian factory has an comparative advantage in the production of transmissions. C. The Vietnamese factory has an absolute advantage producing both engines and transmissions. D. The Vietnamese factory has a comparative advantage in the production of transmissions.
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Could you please answer the following two questions and explain thank you!
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