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Claire and dag are farmers who produce beef and corn. in a​ year, claire can produce 4040 tons of beef or 400400 bushels of corn. in a​ year, dag can produce 2020 tons of beef or 160160 bushels of corn.. to maximize their total output of beef and corn​

Respuesta :

Answer:

Dag will produce beef and Claire will produce corn

Explanation:

given data

claire produce = 40 tons of beef or 400 bushels of corn

dag produce = 20 tons of beef or 160 bushels of corn

solution

as maximize production of 2 farmer trade under comparative advantage

and comparative advantage depend on the opportunity costs

so here opportunity cost of producing beef = [tex]\frac{160}{20}[/tex] = 8 corn

and opportunity cost of producing corn = [tex]\frac{40}{400}[/tex] =  0.1

Dag will produce beef and Claire will produce corn because both have lower opportunity cost in these

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