Homework SourseNick or Rosa has an absolute advantage in the production of
(Nick or Rosa) has an absolute advantage in the production of rye, and (Nick or Rosa) has an absolute advantage in the production of corn.
Nicks opportunity cost of producing 1 bushel of corn is____ bushes of rye, whereas roses opportunity cost of producing 1 bushel of corn is_____ bushels of rye. Because Nick has a ( higher or lower) opportunity cost of producing corn than Rosa, ( Nick or Rosa) has a comparative advantage in the production of corn, and ( Nick or Rosa) has a computer that is in the production of rye.
5. Comparative and absolute advantage Nick and Rosa year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rest. 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 rye on some of the land and corn on the Rye (Bushels per acre) 40 28 Corn (Bushels per acre) Nick Rosa On the following graph, use the blu line (cirde symbol) to plot Nick\'s production possiblities curve (PPF), and use the purple line (diamond symboly to plot Rosa\'s PPF 200 180 t 160 140 120 Nick\'s PPF Rosa\'s PPF Solution
Nick has an absolute advantage in the production of rye (since he can produce 12 bushels of rye more than Rosa), and Nick has an absolute advantage in the production of corn (since he can produce 1 bushel of corn more than Rosa).
Nick\'s opportunity cost of producing 1 bushel of corn is (40/8=) 5 bushes of rye, whereas Rosa\'s opportunity cost of producing 1 bushel of corn is (28/7=) 4 bushels of rye. Because Nick has a higher opportunity cost of producing corn than Rosa, Rosa has a comparative advantage in the production of corn, and Nick has a comparative advantage in the production of rye.
