Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states:

Question

Nebraska Virginia
Wheat 15 5
Cotton 7 4

Who has the comparative advantage in the production of wheat?
*For this answer, I think it is Nebraska but I am confused

Who has the comparative advantage in the production of cotton?
*for this answer, I think it is Virginia but I am confused

What is the marginal rate of transformation when the two states are producing a total of 200 units of corn?

Answer 1

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