Question
Kim can produce 100 pies or 400 cakes an hour. Liam can produce 150 pies or 300 cakes an hour. If Kim and Liam specialise
Kim can produce 100 pies or 400 cakes an hour. Liam can produce 150 pies or 300 cakes an hour. If Kim and Liam specialise and trade, what is the highest price of a pie at which Kim and Liam would agree to trade pies and cakes? What are the gains from trade?
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Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
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