# solution

Antonio and Caroline are farmers. Each one owns a 12-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.

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

(Antonio, Caroline) has an absolute advantage in the production of corn, and (Antonio, Caroline) has an absolute advantage in the production of rye.

Antonio’s opportunity cost of producing 1 bushel of rye is _____ bushels of corn, whereas Caroline’s opportunity cost of producing 1 bushel of rye is _______

bushels of corn. Because (Antonio, Caroline) has a (higher, lower) opportunity cost of producing rye than Caroline, (Antonio, Caroline) has a comparative advantage in the

production of rye, and (Antonio, Caroline) has a comparative advantage in the production of corn.