a. Calculate Kims opportunity cost of a pie and Liams opportunity cost of a pie b. If

Question:

a. Calculate Kim’s of a pie and Liam’s of a pie
b. If each spends 30 minutes of each hour producing pies and 30 minutes producing cakes, how many pies and cakes does each produce?
c. Who has a comparative advantage in producing pies? Who has a comparative advantage in producing cakes? Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...