Looking at this information in terms of the total amount of time each farmer takes to harvest a poun

Looking at this information in terms of the total amount of time each farmer takes to harvest a poun

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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.  Since each of these farmers only has a fixed number of hours to spend harvesting, each  hour spent harvesting pistachios cannot be spent harvesting soybeans, and similarly,  each hour spent harvesting soybeans cannot be spent harvesting pistachios. For every  hour Farmer Erica spends picking soybeans, she gives up 0.5 pounds of pistachios; and  for every hour that Farmer Erica spends picking pistachios, she gives up 0.1 pounds of 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Looking at this information in terms of the total amount of time each farmer takes to harvest a poun

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online