Back to Assignment Attempts Keep the Highest / 3 2. Comparative and absolute advantage Paolo and Sharon are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye (Bushels per acre) (Bushels per acre) Paolo 30 10 Sharon 28 7On the following graph, use the blue line (circle symbol) to plot Paolo's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Sharon's PPF. 200 O 180 Paolo's PPF 180 140 120 Sharon's PPF RYE (Bushels) 100 80 80 40 20 0 100 200 300 400 500 600 700 800 900 1000 CORN (Bushels) has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Paolo's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Sharon's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Paolo has a opportunity cost of producing rye than Sharon, has a comparative advantage in the production of rye, and has a comparative advantage in the production of corn. Grade It Now Save & Continue Continue without saving