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Hubert and Kate are farmers. Each one owns a 20-acre plot ofland. The following table...

Hubert and Kate 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)

Hubert189
Kate408


1 0
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Answer #1

Hubert has absolute advantage in the production of Rye and kate has absolute advantage in the production of corn.

Hence both should produce the thing they are good at and should trade with each other.

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