Question

______has an absolute advantage in the production of alfalfa, and_______ has an absolute advantage in the production of barley. Charles's opportunity cost of producing 1 bushel of barley is ________bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is bushels of alfalfa. Because Charles has a opportunity cost of producing barley than Dina, ________has a comparative advantage in the production of barley, and has a comparative advantage in the production of alfalfa

Answer 1

Answer:

The person with Absolute advantage is the one that produces more of a good than the other.

Dina has an absolute advantage in the production of alfalfa, and Charles has an absolute advantage in the production of barley.

The person with Comparative Advantage is the person who produces something at a lower opportunity cost.

Charles Opportunity Costs

Producing Alfalfa gives 12 bushels per acre instead of 6 bushels for Barley.

Producing 1 Alfalfa means 6/12 = 0.5 bushels Barley is given up

Producing 1 bushel of Barley means 12/6 = 2 bushels Alfalfa is given up.

Dina Opportunity Costs

Producing Alfalfa gives 15 bushels per acre instead of 5 bushels for Barley.

Producing 1 Alfalfa means 5/15 = 0.33 bushels of Barley is given up

Producing 1 bushel of Barley means 15/5 = 3 bushels of Alfalfa is given up.

Charles's opportunity cost of producing 1 bushel of barley is 2 bushels of alfalfa, whereas Dina's opportunity cost of producing 1 bushel of barley is 3 bushels of alfalfa. Because Charles has lower a opportunity cost of producing barley than Dina, Charlie has a comparative advantage in the production of barley, and Dina has a comparative advantage in the production of alfalfa.