Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making ________ while Julia should specialize in making ________. $$\begin{array} { | l | c | c | }
\hline & \text { Tirue to Make a Pie } & \text { Tirne to Muke a Cake } \
\hline \text { Martha } & 60 \text {minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$
A)pies; cakes
B)cakes; pies
C)neither pies nor cakes; both pies and cakes
D)both pies and cakes; neither pies nor cakes

Question

Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making ________ while Julia should specialize in making ________. $$\begin{array} { | l | c | c | } 
\hline & \text { Tirue to Make a Pie } & \text { Tirne to Muke a Cake } \
\hline \text { Martha } & 60 \text {minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$  
A)pies; cakes
B)cakes; pies
C)neither pies nor cakes; both pies and cakes
D)both pies and cakes; neither pies nor cakes

Quizplus · Accepted Answer

Martha has a comparative advantage in making cakes because she has a lower opportunity cost in cake production compared to pie production, while Julia has a comparative advantage in making pies due to her lower opportunity cost in pie production compared to cake production. Comparative advantage is determined by who gives up less of other goods to produce a good, not by who can produce it with the least time or resources.

Refer to the Accompanying Table A)pies; Cakes B)cakes; Pies C)neither Pies nor Cakes; Both Pies

Refer to the Accompanying Table A)pies; Cakes
B)cakes; Pies
C)neither Pies nor Cakes; Both Pies