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Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.


Rye Corn
(Bushels per acre) (Bushels per acre)
Carlos 18 6
Deborah 28 7

___________ has an absolute advantage in the production of rye, and _________ has an absolute advantage in the production of corn. Carlos's opportunity cost of producing 1 bushel of corn is___________ bushels of rye, whereas Deborah's opportunity cost of producing 1 bushel of corn is ___________ bushels of rye. Because Carlos has a ___________ opportunity cost of producing corn than Deborah,____________ has a comparative advantage in the production of corn, and____________ has a comparative advantage in the production of rye.

Respuesta :

Answer:

Deborah

Deborah

3

4

lower

Carlos

Deborah

Explanation:

a person has comparative advantage in production if he / she produces at a lower opportunity cost when compared to other people

for carlos

the opportunity cost of producing rye = 6 / 18 = 0.33

the opportunity cost of producing corn = 18 / 6 = 3

for Deborah,

the opportunity cost of producing rye = 7 / 28 = 0.25

the opportunity cost of producing corn = 28 /7 =4

Carlos has a comparative advantage in the production of corn because he produces at a lower opportunity cost when compared with Deborah

Deborah has a comparative advantage in the production of rye because he produces at a lower opportunity cost when compared with Carlos

A person has absolute advantage in production if he produces more quantity of the product when compared to other people.

Deborah has absolute advantage in the production of both rye and corn

chilljain33

The correct statements will be that

1. Carlos has an absolute advantage in the production of Rye

2. Deborah has an absolute advantage over the production of Corn.

3. Carlos' opportunity cost of producing 1 bushel of rye is 3 bushels of rye

4. Deborah's opportunity cost of producing 1 bushel of corn is 4 bushels of rye.

5. Carlos has a lower opportunity cost of producing corn than Deborah.

6. Deborah has a competitive advantage in the production of Corn.

7. Carlos has a competitive advantage in the production of Rye.

The production outputs of Carlos and Deborah suggests that Deborah is a more efficient farmer.

Production output

  • The production output refers to the total outcome derived from the use of resources available at a given period of time, such that the two different outputs are comparable.

  • Here, as the production output of Deborah is more in both the cases of production of rye and corn, it can be said that the production output of Deborah is more than Carlos.

Hence, the correct statements regrading the production outputs of Carlos and Deborah are as aforementioned.

Learn more about production output here:

https://brainly.com/question/18948748

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