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Loc and Ashima are farmers. Each one owns a 14-acre plot of land. The following table shows the am ...
Loc and Ashima are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. On the following graph, use the blue line (circle symbol) to plot Loc's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima's PPF.
On the following graph, use the blue line (circle symbol) to plot Loc's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima's PPF.
has an absolute advantage in the production of zucchini, and has an absolute advantage in the production of watermelon. Loc's opportunity cost of producing 1 pound of watermelon is pounds of 1 pound has a comparative advantage in the production of watermelon, and has a comparative advantage in the production of zucchini.