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Business, 13.09.2021 09:20 selamh1999
2. Comparative and absolute advantage
Sam and Teresa are farmers. Each one owns an 18-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
Sam
Rye
(Bushels per acre) (Bushels per acre)
15
20
10
3
Teresa
On the following graph, use the blue line (circle symbol) to plot Sam's production possibilities frontier (PPF), and use the purple line (diamond symbol)
to plot Teresa's PPF.
180
162
Sam's PPF
144
126
108
els)
Teresa's PPF
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2. Comparative and absolute advantage
Sam and Teresa are farmers. Each one owns an 18-acre plot of...
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