Comparative and absolute advantage David and Morgan are farmers.Each one owns a 12-acre plot of land. The following table shows theamount of zucchini and watermelon each farmer can produce per yearon a given acre. Each farmer chooses whether to devote all acres toproducing zucchini or watermelon or to produce zucchini on some ofthe land and watermelon on the rest.\table[[,\table[[Zucchini],[(Pounds peracre)]],\table[[Watermelon],[(Pounds peracre)]]],[David,6,2],[Morgan,8,4]]On the following graph, use theblue line (circle symbol) to plot David's production possibilitiesfrontier (PPF), and use the purple line (diamond symbol) to plotMorgan's PPF.
?has an absolute advantage in the production of zucchini, and
?F. has an absolute advantage in the production of watermelon.David's opportunity cost of producing 1 pound of watermelon is
?pounds of zucchini, whereas Morgan's opportunity cost ofproducing 1 pound of watermelon is
?pounds of zucchini. Because David has a
?opportunity cost of producing watermelon than Morgan,
?has a comparative advantage in the production of watermelon,and
?has a comparative advantage in the production of zucchini.
