Question

Jonas or Janis has an absolute advantage in the production of rye and Jonas, or Janis has an absolute advantage in the production of alfalfa. Jonas’ opportunity cost of producing one ton of alfalfa is 2, 3, 4, or 5 tons of rye, while Janis opportunity cost of producing a ton of alfalfa is 2, 3, 4, or 5, tons of rye. Because Jonas has a higher or lower opportunity cost of producing alfalfa that Janis. Janis or Jonas has a comparative advantage in the production of alfalfa, and Jonas or Janis has a comparative advantage in the production of rye.

Jonas and Janis are farmers. Each one owns a 10-acre plot of land. The following table shows the amount of rye and alfalfa each farmer can produce per year on a given acre. Both farmers can choose whether to devote all 10 acres to producing rye only, to producing alfalfa only, or to producing both rye and alfalfa Alfalfa Rye (Tons per acre) (Tons per acre) Jonas Janis 12 On the following graph, use the red line (cross symbols) to plot Jonas's production possibilities frontier (PPF) and use the blue line (circle symbols) to plot Janis's PPF RYE (Tons per yearl 300 Jonas's PPF 250 Janis's PPF 200 150 100 50 10 20 30 40 50 60 70 80 ALFALFA (Tons per year Help Clear All has an absolute advantage in the production of rye and has an absolute advantage in the production of alfalfa Jonas's opportunity cost of producing one ton of alfalfa is , while Janis's opportunity cost of producing one ton of alfalfa is . Because Jonas has a opportunity cost of producing alfalfa than Janis, has a comparative advantage in the production of rye has a comparative advantage in the production of alfalfa, and

Answer 1

The below image depicts the absolute advantage and comparative advantage Janis and Jonas have in production of either rye or alfalfa and their respective production possibility curve.