Refer to the table below. Based on their comparative advantage, Martha should specialize in _______ while Julia should specialize in _______. $$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Time to } \
\text { Make a Pie }
\end{array} & \begin{array} { c }
\text { Time to } \
\text { Make a Cake }
\end{array} \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$
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 table below. Based on their comparative advantage, Martha should specialize in _______ while Julia should specialize in _______. $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Time to } \
\text { Make a Pie }
\end{array} & \begin{array} { c } 
\text { Time to } \
\text { Make a Cake }
\end{array} \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \
\hline
\end{array}$$
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 pies because she can make pies in 60 minutes, while it takes Julia 50 minutes to make a pie. Julia has a comparative advantage in making cakes because she can make cakes in 60 minutes, while it takes Martha 80 minutes to make a cake. Therefore, Martha should specialize in making pies and Julia should specialize in making cakes.

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

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