Carlos and Deborah are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.
Rye
Corn
(Bushels per acre)
(Bushels per acre)
Carlos 40 8
Deborah 28 7
_ has an absolute advantage in the production of rye, and _ has an absolute advantage in the production of corn.
Carlos's opportunity cost of producing 1 bushel of corn is _ bushels of rye, whereas Deborah's opportunity cost of producing 1 bushel of corn is _ bushels of rye. Because Carlos has a _ opportunity cost of producing corn than Deborah, _ has a comparative advantage in the production of corn, and _ has a comparative advantage in the production of rye.
