2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The follovwing table shovs the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and con on the rest. Rye Corn (Bushels per acre) (Bushels per acre) Gilberto 20 Juanita 28 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. 200 180 Gilberto's PPF 160 140 120 Juanita's PPF 100 DRN (Bushes)

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2. Comparative and absolute advantage
Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and
corm on the rest.
Rye
Corn
(Bushels per acre) (Bushels per acre)
Gilberto
20
4
Juanita
28
7
On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Juanita's PPF.
200
180
Gilberto's PPF
160
140
120
Juanita's PPF
100
80
CORN(Bushes)
Transcribed Image Text:2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corm on the rest. Rye Corn (Bushels per acre) (Bushels per acre) Gilberto 20 4 Juanita 28 7 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. 200 180 Gilberto's PPF 160 140 120 Juanita's PPF 100 80 CORN(Bushes)
(?)
200
180
Gilberto's PPF
160
140
120
Juanita's PPF
a0
60
40
20
100
200
300
400
Б00
600
700
B00
900 1000
RYE (Bushels)
v has an absolute advantage in the production of rye, and
v has an absolute advantage in the production of corn.
Gilberto's opportunity cost of producing 1 bushel of corn is
bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn
bushels of rye. Because Gilberto has a
v opportunity cost of producing corn than Juanita,
v has a comparative
is
advantage in the production of corn, and
has a comparative advantage in the production of rye.
CORN(Bushels)
Transcribed Image Text:(?) 200 180 Gilberto's PPF 160 140 120 Juanita's PPF a0 60 40 20 100 200 300 400 Б00 600 700 B00 900 1000 RYE (Bushels) v has an absolute advantage in the production of rye, and v has an absolute advantage in the production of corn. Gilberto's opportunity cost of producing 1 bushel of corn is bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn bushels of rye. Because Gilberto has a v opportunity cost of producing corn than Juanita, v has a comparative is advantage in the production of corn, and has a comparative advantage in the production of rye. CORN(Bushels)
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