25. Chapter mank07t, Section .18, Problem 085 Table 3-23 Assume that the farmer

Question

25. Chapter mank07t, Section .18, Problem 085 Table 3-23 Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours Needed to Pounds Produced in Make 1 Pound of 24 Hours Pork Tomatoes Pork Tomatoes Rancher Refer to Table 3-23. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is OA. 4 pounds of pork and 6 pounds of tomatoes. B. 6 pounds of pork and 6 pounds of tomatoes. O c. 4 pounds of pork and 8 pounds of tomatoes. OD. 6 pounds of pork and 8 pounds of tomatoes.

Explanation / Answer

Ans-D.

Explanation-We find that Farmer uses 24 hours to produce 4 pound of pork where each pound of pork takes 6 hours to produce and 8 pound of tomato where each takes 3 hours time to produce.On the otherhand,Rancher takes 24 hours to produce 6 pound of pork where each pound of pork takes 4 hours to produce and 6 pound of tomato where each takes 4 hours time to produce.In production of any good more efficiently than other is called comparative advantage.So here we can see Rancher is producing 6 unit of pork more efficiently than Farmer who produces 4 unit of pork.So rancher has comparative advantge on pork .Similarly, Farmer produces 8 unit of tomato more efficiently than Rancher who produces 6 unit of tomato.So Farmer has comparative advantage on tomato.

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