David and Morgan are farmers each one owns a 12 acre plot of land. The following table shows the amount of watermelon and zucchini each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing watermelon or zucchini, or to produce watermelon on some of the land and zucchini on the rest.
Watermelon Zucchini
David 6 2
Morgan 10 5
On the following graph, use the blue line to plot David's production possibilities frontier and use the purple line to plot Morgan's production possibilities frontier.
Who has an absolute advantage in the production of watermelon and who has an absolute advantage in the production of zucchini?
1) David has an absolute advantage in the production of watermelon and Morgan has an absolute advantage in the production of zucchini.
2) Morgan has an absolute advantage in the production of watermelon and David has an absolute advantage in the production of zucchini.
3) David and Morgan both have an absolute advantage in the production of watermelon.
4) David and Morgan both have an absolute advantage in the production of zucchini.
