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Mark and Kathy know how to make pies and donuts. Mark can bake four pies an hour, and Kathy can bake three pies an hour.
Mark and Kathy know how to make pies and donuts. Mark can bake four pies an hour, and Kathy can bake three pies an hour. We can infer (choose the best answer)
nothing, because we do not know how many donuts each person can make per hour.
that Mark has an absolute advantage in baking pies
that Mark has a comparative advantage in baking pies
that Mark has both a comparative advantage and an absolute advantage in baking pie
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