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Business, 13.10.2020 06:01 iicekingmann

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.

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