Questions & AnswersMacroeconomics

Loc and Ashima are farmers. Each one owns an 18-acre plot of land....

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Loc and Ashima are farmers. Each one owns an 18-acre plot of land....

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 12 3 Ashima 18 6 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 is pounds of zucchini, whereas Ashima's opportunity cost of producing 1 pound of watermelon is pounds of zucchini. Because Loc has a opportunity cost of producing watermelon than Ashima, has a comparative advantage in the production of watermelon, and has

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