Question: dmitri and frances are farmers each one owns a 20acre...
Question details
Dmitri and Frances are farmers. Each one owns a 20-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) |
|
Dmitri | 20 | 5 |
Frances | 50 | 10 |
Dimitri or Frances?? has an absolute advantage in the production of corn, and Dimitri or Frances?? has an absolute advantage in the production of rye.
Dmitri's opportunity cost of producing 1 bushel of rye is ??
bushels of corn, whereas Frances's opportunity cost of producing 1 bushel of rye is
bushels of corn. Because Dmitri has a opportunity cost of producing rye than Frances, has a comparative advantage in the production of rye, and has a comparative advantage in the production of corn.
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