1. Comparative and absolute advantage Manuel and Poornima are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year...

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Extracted text: 1. Comparative and absolute advantage Manuel and Poornima are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa (Bushels per acre) Barley (Bushels per acre) 8. Manuel 40 Poornima 28 On the following graph, use the blue line (circle symbol) to plot Manuel's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Poornima's PPF. (2) 120 108 Manuel's PPF 96 84 Poornima's PPF 72 60 48 36 24 12 60 120 180 240 300 360 420 480 540 600 ALFALFA (Bushels) has an absolute advantage in the production of alfalfa, and has an absolute advantage in the production of barley. Manuel's opportunity cost of producing 1 bushel of barley is bushels of alfalfa, whereas Poornima's opportunity cost of producing 1 bushel of barley is Manuel has a bushels of alfalfa. Because v has a opportunity cost of producing barley than Poornima, has a comparative advantage in comparative advantage in the production of barley, and the production of alfalfa. BARLEY (Bushels)