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QUESTION 3 Mary has $200 and spends all of her money on bread and milk. The price of milk is $10 gallon and the price
QUESTION 3 Mary has $200 and spends all of her money on bread and milk. The price of milk is $10 gallon and the price of bread is $2/loaf. What is Mary's opportunity cost of consuming one gallon of milk? O a. 4 loaves of bread O b.0.40 loaves of bread c. 2 loaves of bread O d. 5 loaves of bread e. 10 loaves of bread O f. 0.50 loaves of bread g. 100 loaves of bread Oh.4.5 loaves o i. 2.5 loaves of bread LOLE production of milk production of ice cream production of milk production of ice cream Devote all time to producing 500 pints of milk o pints of ice cream 1,000 pints of milk O pints of ice cream Milk O pints of milk Devote all time to producing ice cream 100 pints of ice cream O pints of milk 125 pints of ice cream Note: Assume that both Devon and Ravi can produce any corresponding linear combination of milk and ice cream. Who has the comparative advantage in the production of ice cream? a. Ravi O b. Neither O c. Both O d. Devon
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