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Loc and Ashima are farmers. Each one owns an 18-acre plot of land

Loc and Ashima are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.

ZucchiniWatermelon
(Pounds per acre)(Pounds per acre)
Loc123
Ashima186

On the following graph, use the blue line (circle symbol) to plot Loc’s production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima’s PPF.

Loc and Ashima are farmers. Each one owns an 18-acre plot of land

Total Production of 18 Acres.

ZucchiniWatermelon
Loc21654
Ashima324108
Explanation:
You can see that when Loc devotes all 18 acres to producing zucchini, he can produce 216 pounds of zucchini per year (18 acres×12 pounds per acre
). On the other hand, when he uses all 18 acres to produce watermelon, he produces 54 pounds of watermelon per year (18 acres×3 pounds per acre
). Therefore, his PPF extends from (216, 0) to (0, 54).
You can do similar calculations for Ashima to show that when she devotes all of her land to producing zucchini, she can produce 324 pounds of zucchini per year. On the other hand, when she uses all 18 acres to produce watermelon, she produces 108 pounds of watermelon per year. Therefore, her PPF extends from (324, 0) to (0, 108).
Notice that both PPFs are linear rather than bowed outward because there is a constant trade-off between the two goods.

Ashima   has an absolute advantage in the production of zucchini, and Ashima   has an absolute advantage in the production of watermelon.

Explanation:
An individual has an absolute advantage in the production of a good if he or she can produce a unit of output using fewer resources than someone else. Here, the only resource you should consider is land.
Loc can produce 12 pounds of zucchini per acre of land, while Ashima can produce 18 pounds of zucchini per acre of land. Therefore, Ashima has an absolute advantage in the production of zucchini.
Similarly, Loc can produce 3 pounds of watermelon per acre of land, while Ashima can produce 6 pounds of watermelon per acre of land. Therefore, Ashima has an absolute advantage in the production of watermelon.
Since Loc and Ashima own the same resources (in this case, the size of both plots of land is the same), another way you can determine who has the absolute advantage in the production of a good is to see who can produce more of that good if both people devote all of their resources to making it.

Loc’s opportunity cost of producing 1 pound of watermelon is 4 pounds of zucchini, whereas Ashima’s opportunity cost of producing 1 pound of watermelon is 3 pounds of zucchini. Because Loc has a higher  opportunity cost of producing watermelon than Ashima, Ashima   has a comparative advantage in the production of watermelon, and Loc  has a comparative advantage in the production of zucchini.

Explanation:
For each acre Loc uses to produce zucchini, he produces 12 pounds of zucchini per year. But using that acre to produce zucchini means he must forgo the 3 pounds of watermelon he could have produced on that land. Therefore, Loc's opportunity cost of producing 12 pounds of zucchini is 3 pounds of watermelon, so the opportunity cost of producing each pound of zucchini is 1/4 pound of watermelon per pound of zucchini (3 pounds of watermelon12 pounds of zucchini
). (Note: The slope of Loc's PPF is -1/4.) You can compute Loc’s opportunity cost of producing a pound of watermelon by taking the reciprocal of the opportunity cost of producing a pound of zucchini. That is, the opportunity cost of producing a pound of watermelon, in this case, is 4 pounds of zucchini per pound of watermelon.
By the same logic, Ashima could use an acre of land to produce either 18 pounds of zucchini or 6 pounds of watermelon, so her opportunity cost of producing zucchini is 1/3 pound of watermelon per pound of zucchini (6 pounds of watermelon18 pounds of zucchini). 
(Note: The slope of Ashima's PPF is -1/3.)
Comparative advantage is determined by the opportunity cost of producing a good rather than the amount of resources used to make that good. An individual has a comparative advantage in producing a good if he or she can produce it at a lower opportunity cost than someone else. In this case, Ashima has a lower opportunity cost of producing watermelon than Loc, so Ashima has a comparative advantage in the production of watermelon. Note that the opposite is true for zucchini: Repeating the previous calculations, you can see that Loc's opportunity cost of producing a pound of zucchini is 1/4 pound of watermelon, and Ashima's opportunity cost of producing a pound of zucchini is 1/3 pound of watermelon. Therefore, Loc has a comparative advantage in the production of zucchini, since he gives up less watermelon to produce zucchini.
Notice that, although it is possible for one person to have an absolute advantage in the production of both goods, it is impossible for one person to have a comparative advantage in the production of both goods. Since Ashima has a lower opportunity cost of producing watermelon than Loc has, it must be the case that Loc has a lower opportunity cost of producing zucchini than Ashima has. On the other hand, if both individuals have the same opportunity cost of producing both goods, neither has a comparative advantage in the production of either good.

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