30 Apr Question: 6. Comparative advantage Lorenzo and Neha are farmers. Each one owns an 18-acre plot of land. The…
6. Comparative advantage Lorenzo and Neha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Barley (Bushels per acre) Alfalfa (Bushels per acre) 36 20 Lorenzo Neha 10 On the following graph, use the blue line (circle symbol) to plot Lorenzo’s production possibilities frontier (PPF), and use the purple line (diamond
On the following graph, use the blue line (circle symbol) to plot Lorenzo’s production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Neha’s PPF. 180 T Lorenzo’s PPF 144 t 126 Neha’s PPF במ 90 Y 72 במ 54 38 18 0 0 270 30 450 540 630 720 810 00 ALFALFA (Bushels
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