If they bake only muffins, in a single day, Gregory can bake 10 muffins, and Gabriella can bake five muffins. If they bake only cookies, in a single day, Gregory can bake 10 cookies, and Gabriella can bake four cookies. We know that _____ has an absolute advantage and a comparative advantage in baking _____.

Question

Quizplus · Accepted Answer

Gregory has an absolute advantage in both muffins and cookies because he can bake more of each than Gabriella can in a single day (10 muffins vs. Gabriella's 5, and 10 cookies vs. Gabriella's 4). However, the comparative advantage is determined by who has the lower opportunity cost in producing one good over the other. Since both can only bake one type of good per day, and Gregory produces more of both goods, he also has a comparative advantage in both, but the question specifically asks about cookies.

If They Bake Only Muffins, in a Single Day, Gregory