Economics Question

Refer to Comparative Advantage.png, answer questions a) & b) show your work.

2. Suppose both Emma and Hakim have small bakeries. They both produce bread and pastries. Below are each of their daily production numbers. Emma's Bakery Bakery Hakim Bread ( doz./day) Pastries (doz./day) Bread (doz./day) Pastries (doz./day) 0 30 0 45 24 36 18 8 27 6 12 12 18 6 16 9 10 0 20 0 a) Who has a comparative advantage in producing bread? And who has a comparative advantage in producing pastries? b) Suppose Emma is currently producing 2 doz. loaves of bread and 24 doz. pastries and Hakim is currently producing 12 doz. loaves of bread and 18 doz. pastries. If either or both have a comparative advantage in one product or the other, demonstrate how specializing in what they have a comparative advantage of will make both better off if they engage in trade