Arnold and Frank are farmers who own lands close to each other. Arnold owns 160 acres...

 

Transcribed Image Text:

Arnold and Frank are farmers who own lands close to each other. Arnold owns 160 acres of land, while Frank owns 180 acres. These are the number of acres they need to produce one ton of each good. Arnold Frank Number of acres necessary to produce 1 ton of: Tomatoes Potatoes 4 8 3 9 P2 A. Fill in the following table. Max number of tons they could produce of: Tomatoes Arnold Frank Potatoes Opportunity cost, in terms of tons of Potatoes, to produce 1 ton of Tomatoes -5 potato tons, 35 tomato tons) -10 potatotons, 20 tomato tons -15 potato tons, 5 tomato tons Opportunity cost, in terms of tons of Tomatoes, to produce 1 ton of Potatoes P2 B. Answer whether the following production combinations are inside, exactly on the border, or outside Arnold's production possibilities curve: P2 C. Which of the two farmers has a comparative advantage producing potatoes? Which of the two farmers has an absolute advantage producing potatoes? Arnold and Frank are farmers who own lands close to each other. Arnold owns 160 acres of land, while Frank owns 180 acres. These are the number of acres they need to produce one ton of each good. Arnold Frank Number of acres necessary to produce 1 ton of: Tomatoes Potatoes 4 8 3 9 P2 A. Fill in the following table. Max number of tons they could produce of: Tomatoes Arnold Frank Potatoes Opportunity cost, in terms of tons of Potatoes, to produce 1 ton of Tomatoes -5 potato tons, 35 tomato tons) -10 potatotons, 20 tomato tons -15 potato tons, 5 tomato tons Opportunity cost, in terms of tons of Tomatoes, to produce 1 ton of Potatoes P2 B. Answer whether the following production combinations are inside, exactly on the border, or outside Arnold's production possibilities curve: P2 C. Which of the two farmers has a comparative advantage producing potatoes? Which of the two farmers has an absolute advantage producing potatoes?