Now suppose that it became possible to plant tea bushes and...

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Unit 2—Production Possibilities and Comparative Advantage Last week, we considered a farmer choosing to plant a new coffee tree. Planting a tree uses up land that could be used to grow tea bushes. Suppose that a farmer has ten acres of land and planting. The table shows the production of coffee and tea as a function of the number of acres planted with coffee. In the space below, graph the production possibility frontier between coffee and tea (part 1). Acres planted with coffee Production Coffee Tea (part 1) Tea (part 2) 0 0 10 10 1 10 9 9.5 2 19 8 9 3 27 7 8.5 4 34 6 8 5 40 5 7.5 6 45 4 7 7 49 3 6.5 8 52 2 6 9 54 1 5.5 10 55 0 5
Now suppose that it became possible to plant tea bushes and coffee trees on the same land (the tea bushes grow below the coffee trees). As a result, the farmer grows some tea on land planted with coffee as well (listed as tea (part 2) in the table). Graph the new production possibility frontier. Finally, in some countries, like India, tea grows better in some areas than coffee, and farmers can choose

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