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Suppose we have a 2-person world, with only Stephen and his friend LeBron. Suppose that Stephen can move70boxes or bake28cookies in an hour. Suppose that

Suppose we have a 2-person world, with only Stephen and his friend LeBron. Suppose that Stephen can move70boxes or bake28cookies in an hour. Suppose that LeBron could move20boxes or bake5cookies in an hour. Is trade possible?

Choose one:

A.No, trade isn't possible, because Stephen has an absolute advantage in both making cookies and moving boxes.

B.Yes, trade is possible. Stephen should make cookies while LeBron moves boxes, because Stephen has a comparative advantage in making cookies and LeBron has a comparative advantage in moving boxes.

C.Yes, trade is possible. Stephen should move boxes while LeBron makes cookies, because Stephen has a comparative advantage in moving boxes, whereas LeBron has a comparative advantage in making cookies.

D.No, trade isn't possible, because LeBron has an absolute advantage in both making cookies and moving boxes.

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