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In a day, x can bake 36 croissants or 12 loaves of bread; y can bake 16 croissants or 8 loaves of bread. For mutually
In a day, x can bake 36 croissants or 12 loaves of bread; y can bake 16 croissants or 8 loaves of bread. For mutually beneficial
trade, x should
A. bake croissants because she has a comparative advantage.
B. give up. Mutually beneficial trade is impossible in this situation.
C. bake croissants because she has an absolute advantage.
D. bake loaves of bread because she has a comparative advantage.
E. bake loaves of bread because she has an absolute advantage.
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