Comparative advantage Felix and Juanita arc farmers. Each one owns a 5-acre plot

Question

Comparative advantage Felix and Juanita arc farmers. Each one owns a 5-acre plot of land. The following table shows the amount of barter and rye each farmer can produce per year on a given acre. Both farmers can choose whether to devote all 5 acres to producing barley only, to producing rye only, or to producing both barley and rye. On the following graph, use the red line (cross symbols) to plot Felix's product on possibilities frontier (PPF) and use the blue line (circle symbols) to plot Juanita's PPF. Juanita has an absolute advantage in the production of barley and Felix has an absolute advantage in the production of rye. Felix's opportunity cost of producing one ton of rye is 5 tons of barley, while Juanita's opportunity cost of producing one ton of rye is 4 tons of barley. Because Felix has a higher opportunity cost of producing rye than Juanita, Juanita has a comparative advantage in the production of rye, and Felix has a comparative advantage in the production of barley.

Explanation / Answer

Every thing is correct. But only correction is required is:

Felix has an absolute advantage in production of barley and Felix has an absolute advantage in production of rye.

Because absolute advantage is the ability of a country to produce a good more efficiently than another country.

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