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(Solved): with steps and coordinate points please. 2. Comparative and absolute advantage David and Morgan are ...
with steps and coordinate points please.
2. Comparative and absolute advantage David and Morgan are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest. On the following graph, use the blue line (circle symbol) to plot David's production possibilities frontier (PPF), and use the purpie line (diamond symbol) to plot Morgan's PPF.
On the following graph, use the blue line (circle symbol) to plot Davio's production possibitities frontier (pPF), and use the purpie line (diamand symbol) to plot Morgan's PPF.
has an absolute advantage in the production of maize, and has an absolute advantage in the production of squash. David's opportunity cost of producing 1 pound of squash is pounds of maize, whereas Morgan's opportunity cost of producing 1 pound of squash is pounds of maize. Because David has a opportunity cost of producing squash than Margany has a comparative advantage in the production of squash, and has a comparative odvantage in the production af maize.