Mary makes 10 pies and 20 cakes a day and her opportunity cost of a cake is

Question:

Mary makes 10 pies and 20 cakes a day and her opportunity cost of a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of a cake is 4 pies. If they specialize in the good in which they have a comparative advantage ______.

A. Mary produces pies B. Tim produces pies and cakes C. Mary produces cakes while Tim produces pies D. Tim produces cakes while Mary produces pies

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essential Foundations Of Economics

ISBN: 9780316512329

6th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: