Loc and Ashima are farmers. Each one owns an 18-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.
Zucchini
Watermelon
(Pounds per acre)
(Pounds per acre)
Loc 8 2
Ashima 9 9
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.
Loc's PPF
Ashima's PPF
0
90
180
270
360
450
540
630
720
810
900
180
162
144
126
108
90
72
54
36
18
0
WATERMELON (Pounds)
ZUCCHINI (Pounds)
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 ispounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound of watermelon ispounds of zucchini. Because Loc has a opportunity cost of producing watermelon than Ashima, has a comparative advantage in the production of watermelon, and has a comparative advantage in the production of zucchini.