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malik has an absolute advantage in the production of broccoli, and mali…

Question

malik has an absolute advantage in the production of broccoli, and malik has an absolute advantage in the production of spinach.
malik’s opportunity cost of producing 1 pound of spinach is 2 pounds of broccoli, whereas yusuf’s opportunity cost of producing 1 pound of spinach is 4 pounds of broccoli. because malik has a lower opportunity cost of producing spinach than yusuf, malik has a comparative advantage in the production of spinach, and yusuf has a comparative advantage in the production of broccoli.

Explanation:

Step1: Identify absolute advantage

Absolute advantage means producing more of a good with the same resources. From the graph:

  • Malik can produce 80 pounds of spinach or 32 pounds of broccoli.
  • Yusuf can produce 240 pounds of broccoli or 16 pounds of spinach.

So, Malik produces more spinach (80 > 16), Yusuf produces more broccoli (240 > 32).

Step2: Calculate opportunity cost for spinach

Opportunity cost of 1 spinach = $\frac{\text{Broccoli given up}}{\text{Spinach produced}}$

  • Malik: $\frac{32}{80} = 0.4$ pounds of broccoli
  • Yusuf: $\frac{240}{16} = 15$ pounds of broccoli

Step3: Calculate opportunity cost for broccoli

Opportunity cost of 1 broccoli = $\frac{\text{Spinach given up}}{\text{Broccoli produced}}$

  • Malik: $\frac{80}{32} = 2.5$ pounds of spinach
  • Yusuf: $\frac{16}{240} = \frac{1}{15} \approx 0.067$ pounds of spinach

Step4: Assign comparative advantage

Comparative advantage goes to the producer with lower opportunity cost:

  • Lower spinach opportunity cost: Malik (0.4 < 15)
  • Lower broccoli opportunity cost: Yusuf (0.067 < 2.5)

Answer:

  1. Absolute advantage: Malik has an absolute advantage in the production of broccoli, and Malik has an absolute advantage in the production of spinach.
  2. Opportunity cost: Malik's opportunity cost of producing 1 pound of spinach is $\boldsymbol{0.4}$ pounds of broccoli, whereas Yusuf's opportunity cost of producing 1 pound of spinach is $\boldsymbol{15}$ pounds of broccoli.
  3. Comparative advantage: Because Malik has a lower opportunity cost of producing spinach than Yusuf, Malik has a comparative advantage in the production of spinach, and Yusuf has a comparative advantage in the production of broccoli.