20 a Calculate Kim’s and Liam’s opportunity cost 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? Kim can produce 40 pies or 400 cakes an hour. Liam can produce 100 pies or 200 cakes an hour.