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A typical Australian farmer can produce 8000 lbs of wheat or 500 lbs of potatoes per...

A typical Australian farmer can produce 8000 lbs of wheat or 500 lbs of potatoes per year. A typical Canadian farmer can produce 5000 lbs of wheat or 400 lbs of potatoes per year. Who has the comparative advantage in producing potatoes?

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Answer #1

Austrlian farmer prducing the 500 lbs per year of poatoes per year

Canadian farmer prducing the 400 lbs per year of poatoes per year  .

So comparative of wheat lbs against per lbs of potatoes

Number of lbs of potato against wheat in australia = 500 lbs / 8000 lbs = 0.06 lbs against wheat
Number of lbs of potato against wheat in Canadian = 400 lbs / 4000 lbs = 0.08 lbds against wheat
So the comparative advantage in producing potatoes is greater in Canadian Farmer
Answer = Canadian Farmer
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