2. Comparative and absolute advantageGilberto 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 corn on the rest. for the drop down box selections. The option for first is Juanita or Gilberto, for the second its also Juanita or Gilberto, for third its lower or higher, for fourth its Juanita or Gilberto, and for 5th its also Juanita or Gilberto On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Juanita's PPF.200180Gilberto's PPF160140120Juanita's PPF10080604020100200300400 500600 700800900 1000RYE (Bushels)▼ has an absolute advantage in the production of rye, andv has an absolute advantage in the production of corn.Gilberto's opportunity cost of producing 1 bushel of corn isbushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corisbushels of rye. Because Gilberto has aopportunity cost of producing corn than Juanita,has a comparativeadvantage in the production of corn, andv has a comparative advantage in the production of rye.(sja ys ng) NYO) RyeCorn(Bushels per acre)(Bushels per acre)Gilberto204Juanita28On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Juanita's PPF.200180Gilberto's PPF160140120Juanita's PPF10080604020100 200300400 500600 700800900 1000RYE (Bushels)CORN (Bushels)

Answered: 2. Comparative and absolute advantage…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 9SQP

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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 corn on the rest.

for the drop down box selections. The option for first is Juanita or Gilberto, for the second its also Juanita or Gilberto, for third its lower or higher, for fourth its Juanita or Gilberto, and for 5th its also Juanita or Gilberto