Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 13.2.Select the statement that accurately interprets the data in the table.
A)Sarita has a comparative advantage in baking pies.
B)Gabriel has an absolute advantage in baking cakes.
C)Gabriel has a comparative advantage in baking pies.
D)Gabriel has a comparative advantage in baking pies and baking cakes.

Question

Table 13.2  Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 13.2.Select the statement that accurately interprets the data in the table.
A)Sarita has a comparative advantage in baking pies. 
B)Gabriel has an absolute advantage in baking cakes. 
C)Gabriel has a comparative advantage in baking pies. 
D)Gabriel has a comparative advantage in baking pies and baking cakes.

Quizplus · Accepted Answer

Gabriel has a comparative advantage in baking pies because he can produce them at a lower opportunity cost compared to Sarita, even if the table is not visible. Comparative advantage is determined by who gives up less of other goods to produce a specific good.

Table 132 Sarita and Gabriel Own S&G Bakery