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Question

Need to verify my answers to this problem, please show work if my solutions are wrong.

Felix and Janet are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest. Rye (Bushels per acre) 12 10 Corn (Bushels per acre) Felix Janet On the following graph, use the blue line (circle symbol) to plot Felix's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Janet's PPF. 160 144 Felix's PPF 128 112 4P 96 Janet's PPF 80 O 64 48 32 16 0 80 160 240 320 400 480 560 640 720 800 RYE (Bushels) lix has an absolute advantage in the production of rye, and Janet has an absolute advantage in the production of CO Felix's opportunity cost of producing 1 bushel of corn is 4 bushels of rye, whereas Janet's opportunity cost of producing 1 bushel of corn is 2 bushels of rye. Because Felix has a lower opportunity cost of producing corn than Janet, Felix has a comparative advantage in the - - production of corn, and Felix has a comparative advantage in the production of rye

Explanation / Answer

All the answers are correct except the last blank.

Felix 's PPF extends from (0, 48) to ( 192,0)

Janet's PPF extends from (0,80) to ( 160, 0)

Felix's opportunity cost of producing 1 Bushel of corn = 12/ 3 = 4 bushels of rye

Janet's opportunity cost of producing 1 Bushel of corn = 10/ 5 = 2 bushels of rye

Because Felix has a higher opportunity cost of producing corn than Janet, Janet has a comparative advantage in the production of corn and Felix has a comparative advantage in the production of rye.

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