Question

Lucia and barley are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of their land and alfalfa on the rest.
Barley Alfalfa
Bushels per acre Bushels per acre
Musashi 40 8
Rina 28 7

Lucia has an absolute advantage in the production of barley, and Lucia has an absolute advantage in the production of alfalfa. Kenji's opportunity cost of producing 1 bushel of alfalfa is ___________ bushels of barley, whereas Lucia's opportunity cost of producing 1 bushel of alfalfa is ____________ bushels of barley. Because Kenji has ahigher opportunity cost of producing alfalfa than ,Lucia has a comparative advantage in the production of alfalfa, andKenji has a comparative advantage in the production of barley.

Answer 1

Answer:

Kenji's alfalfa opportunity cost:

each bushel of Alfalfa cost 4 bushel of barley.

Lucia's alfalfa opportunity cost:

each bushel of Alfalfa cost 5 bushel of barley.

Explanation:

the opportunity cost is based on the output resinged when chosing a particular good.

In this case, the opportunity cost of barley is the Alfalfa and, for th Alfalfa the Barley that the farmer could have made.

Kenji's:

20 Barley / 7 alfalfa  = 4 barley

each bushel of Alfalfa cost 4 bushel of barley.

Lucia's:

40 barley / 8 alfalta = 5 barly

each bushel of Alfalfa cost 5 bushel of barley.

DISCLAMER:

The table suggest two different names

I will assume the top value are from Lucia as those gives the absolute advantage stated in the question.

"Lucia has an absolute advantage in the production of barley, and Lucia has an absolute advantage in the production of alfalfa"

and the bottom from Kenji.