Nick and Rosa are farmers. Each one owns a 20-acre plot of land. The following table shows theamount of barley and alfalfa each farmer can produce per year on a given acre. Each farmerchooses whether to devote all acres to producing barley or alfalfa or to produce barley on some ofthe land and alfalfa on the rest.Barley(Bushels per acre) (Bushels per acre)AlfalfaNick105Rosa408On the following graph, use the blue line (circle symbol) to plot Nick's production possibilitiesfrontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF.(?)Nick's PPF10140120Rosa's PPF1804020180 200 300 40 sa0 a0 700 0 s00 1000BARLEY (Bushela* has an absolute advantage in the production of barley, andhas an absoluteadvantage in the production of alfalfa.Nick's opportunity cost of producing 1 bushel of alfalfa isbushels of barley, whereasbushels of barley. Because* has a comparativeRosa's opportunity cost of producing 1 bushel of alfalfa isNick has aopportunity cost of producing alfalfa than Rosa,advantage in the production of alfalfa, andproduction of barley.has a comparative advantage in the(soysne VNIV

has an absolute advantage in the production of barley, and has an absolute advantage in the production of alfalfa. Nick's opportunity cost of producing 1 bushel of alfalfa is bushels of barley, whereas Rosa's opportunity cost of producing 1 bushel of alfalfa is Nick has a bushels of barley. Because has a comparative opportunity cost of producing alfalfa than Rosa, advantage in the production of alfalfa, and production of barley. has a comparative advantage in the

has an absolute advantage in the production of barley, and has an absolute advantage in the production of alfalfa. Nick's opportunity cost of producing 1 bushel of alfalfa is bushels of barley, whereas Rosa's opportunity cost of producing 1 bushel of alfalfa is Nick has a bushels of barley. Because has a comparative opportunity cost of producing alfalfa than Rosa, advantage in the production of alfalfa, and production of barley. has a comparative advantage in the

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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Kevin and Maria are farmers. Each one owns a 20-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) Kevin 40 8 Maria 28 7
Hubert and Kate are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley (BUSHELS PER ACRE) Alfalfa (BUSHELS PER ACRE) Hubert 40 8 Kate 28 7
Suppose you have inherited a few acres of landfrom a relative and you are considering what to dowith your inheritance. A farmer with land next toyours offers to buy your acres so he can expand hisgrazing area. How will you decide whether to sellyour land to the farmer? What factors should youconsider?
Paolo and Van are considering contributing toward the creation of a water fountain. Each can choose whether to contribute $400 to the water fountain or to keep that $400 for a weekend getaway. Since a water fountain is a public good, both Paolo and Van will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.80 of benefit. For example, if both Paolo and Van choose to contribute, then a total of $800 would be contributed to the water fountain. So, Paolo and Van would each receive $640 of benefit from the water fountain, and their combined benefit would be $1,280. This is shown in the upper left cell of the first table. Since a weekend getaway is a private good, if Paolo chooses to spend $400 on a weekend getaway, Paolo would get $400 of benefit from the weekend getaway and Van wouldn't receive any benefit from Paolo's choice. If Paolo still spends $400 on a weekend getaway and Van chooses to…
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Suppose a farmer has a fixed resource of 80 acres planted in corn. If the farmer does not cultivate the cornfield (clear the weeds) at all, the yield will be 40 bushels per acre. If he cultivates the land once, output may rise to 50 bushels per acre. A second cultivation may increase output to 57 bushels per acre, a third to 61, and a fourth to 63. a. What will succeeding cultivations will do? b. Why not just keep adding fertilizers and harvesters?c. Give another agriculture related example that will fit this concept.