Problem Set 2 (Inefficiency of Local Food) Ida is a farmer in Idaho, and Mo is a farmer in Missouri

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Problem Set 2 (Inefficiency of Local Food) Ida is a farmer in Idaho, and Mo is a farmer in Missouri. Suppose that both Ida and Mo have small farms with 40 acres to plant corn and potatoes. Yield per Acre Corn (All Purpose) Potatoes (All Varieties) Idaho 201cwt 437cwt Missouri 157cwt 272cwt Figures are average hundredweight (cwt) per acre between 20162018. Source: USDA Crop Production 2018 Summary 1. Given the average yields in the table above, who has the absolute advantage in growing corn? What about potatoes? 2. In order to support localized agriculture, suppose Ida and Mo both plant half their land (20 acres) with corn and half (20 acres) with potatoes. How much of each crop will they produce? Ida Mo Total Corn Potatoes 3. If Ida and Mo decided to specialize according to comparative advantage, what crop would each produce? 4. Suppose that Mo decides to produce corn exclusively and buy potatoes from Ida instead of planting them himself. How much corn will he produce? 5. How many acres will Ida need to plant with corn to in order to maintain the same level of total production of corn in part 2? 6. How many potatoes will Ida be able to produce on her remaining land? 7. Plot the Production Possibilities Frontier for Ida and Mo. Then plot the joint production possibility frontier. (You might want to use a graph paper.)