Let's use another example. Revisiting the farms belonging to Farmer Erica and Farmer Rick, we discover that they are both able to produce pistachios and soybeans. Farmer Erica can harvest 1 pound of pistachios in 2 hours and she can harvest 5 pounds of soybeans in 2 hours. Farmer Rick, on the other hand, can harvest 1 pound of pistachios in 10 hours and 50 pounds of soybeans in 2 hours. Looking at this information in terms of the total amount of time each farmer takes to harvest a pound of each product is the next step to understanding comparative advantage. Farmer Erica can harvest 1 pound of pistachios in an hour while it takes Farmer Rick 10 hours to harvest 1 pound of pistachios. On the other hand, Farmer Rick can harvest 1 pound of soybeans in about 2.5 minutes, but it takes Farmer Erica about 24 minutes to harvest a pound of soybeans.
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Farmer, soybeans, pistachios, Farmer Erica, Farmer Rick, Farmer Rick