Question
In a day, Louis can bake 360 maple pecan danish or 180 fruit explosion muffins; Vuitton can bake 90 maple pecan danish or 30 fruit
In a day, Louis can bake 360 maple pecan danish or 180 fruit explosion muffins; Vuitton can bake 90 maple pecan danish or 30 fruit explosion muffins. For mutually beneficial trade, Vuitton should Select one:
A. bake muffins because he has an absolute advantage.
B. bake danish because he has a comparative advantage.
C. bake danish because he has an absolute advantage.
D. bake muffins because he has a comparative advantage.
E. give up. Mutually beneficial trade is impossible in this situation Answer was B. But I would like to know a detailed solution. Please help me.
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Business Driven Technology
Authors: Paige Baltzan
5th edition
978-007337684, 9780077419318, 73376841, 77419316, 978-0073376844
