Absolute advantage in the production of barley

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Andrew and Beth 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 their land and barley on the rest.

Andrew

40

8

Beth

28

7

On the following graph, use the blue line (circle symbol) to plot Andrew's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Beth's PPF. Andrew's PPFBeth's PPF06012018024030036042048054060012010896847260483624120BARLEY (Bushels)ALFALFA (Bushels) has an absolute advantage in the production of alfalfa, andhas an absolute advantage in the production of barley.

Andrew's opportunity cost of producing 1 bushel of barley isbushels of alfalfa whereas Beth's opportunity cost of producing 1 bushel of barley isbushels of alfalfa. Because Andrew has aopportunity cost of producing barley than Beth,has a comparative advantage in the production of barley, andhas a comparative advantage in the production of alfalfa.

Reference no: EM131063578

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