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Isabel Can Bake 6 Cakes or 240 Muffins in an Eight-Hour

Question 328

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Isabel can bake 6 cakes or 240 muffins in an eight-hour day. Pawel can bake 12 cakes or 360 muffins in an eight-hour day. Who has a comparative advantage in cakes, and what is his or her opportunity cost of producing one additional cake?

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Pawel has a comparative advant...

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