There are two plots of land of equal size. Plot 1 can yield 6 oranges - ProProfs Discuss
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There are two plots of land of equal size. Plot 1 can yield 6 oranges per acre or 4 bananas per acre, and plot 2 can yield 2 oranges per acre or 3 bananas per acre. Which of the following is incorrect?



A. Plot 1 has absolute advantage in producing both oranges and bananas.
B. The cost of oranges from plot 1 is 4/6 bananas and the cost of oranges from plot 2 is 3/2 bananas.
C. Plot 2 is the low-cost producer of oranges.
D. Suppose each plot of land is specialized to produce on type of fruit. Plot 1 should specialize in growing oranges and plot 2 should specialize in growing bananas in order to maximize efficiency.

This question is part of ECON 211 #2
Asked by Adrower, Last updated: Dec 18, 2019

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1 Answer

John Smith

John Smith

Answered Mar 10, 2017

Plot 2 is the low-cost producer of oranges.
 

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