Answer to Question #83780 in Microeconomics for Michael

Question #83780
Kofi and Ama have 120 hours each and they can spend their time planting Rice or Maize.
You are told that the opportunity cost of producing one bag of rice for Ama is 1/3 bag of
maize and the opportunity cost of producing one bag of rice for Kofi is ¼ bag of maize.
Ama can produce 6 bags of maize when she uses all her resource for maize production
and 1Kofi can produce 8 bags of rice when he uses all his resource .Use this to answer
the following questions:
1
Expert's answer
2018-12-14T14:09:10-0500

The opportunity cost of producing one bag of rice for Ama is 1/3 bag of maize and for Kofi is ¼ bag of maize.

Ama can produce 6 bags of maize when she uses all her resource for maize production

and 1Kofi can produce 8 bags of rice when they use all her resource.

According the information above we can conclude, that Ama has comparative advantage in producing maize and Kofi has comparative advantage in producing rice.

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