has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Hubert's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Kate's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Kate, has a comparative bushels of corn. Because Hubert has a advantage in the production of rye, and v has a comparative advantage in the production of corn.
has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Hubert's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Kate's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Kate, has a comparative bushels of corn. Because Hubert has a advantage in the production of rye, and v has a comparative advantage in the production of corn.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section3.2: Comparative Advantage: The Driving Force Of Specilization
Problem 2QQ
Related questions
Question
Transcribed Image Text:Hubert and Kate are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce
per year 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
the rest.
Corn
Rye
(Bushels per acre) (Bushels per acre)
Hubert
20
4
Kate
28
7
On the following graph, use the blue line (circle symbol) to plot Hubert's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Kate's PPF.
120
108
Hubert's PPF
96
84
Kate's PPF
72
60
48
RYE (Bushels)
Transcribed Image Text:120
108
Hubert's PPF
96
84
72
Kate's PPF
60
48
36
12
60
120
180
240
300
360
420
480
540
600
CORN (Bushels)
has an absolute advantage in the production of corn, and
has an absolute advantage in the production of rye.
Hubert's opportunity cost of producing 1 bushel of rye is
bushels of corn, whereas Kate's opportunity cost of producing 1 bushel of rye is
opportunity cost of producing rye than Kate,
has a comparative
bushels of corn. Because Hubert has a
advantage in the production of rye, and
has a comparative advantage in the production of corn.
RYE (Bushels)
24
Expert Solution
Step 1
Given:
| Corn | Rye | |
| Hubert | 20 | 4 |
| Kate | 28 | 7 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning