Consider the following scenario.Two friends,Rachel and Joey,enjoy baking bread and making apple pies.Rachel takes two hours to bake one loaf of bread and one hour to make one pie.Joey takes four hours to bake one loaf of bread and four hours to make one pie.If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?
A) Joey should specialize in making pies because he has an absolute advantage.
B) Rachel should specialize in making pies and Joey should specialize in making bread.
C) Joey should specialize in making pies and Rachel should specialize in making bread.
D) Rachel should specialize in making bread and pies because she has a comparative advantage in both.
E) Rachel should not specialize because she is better at producing both.

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The Answer of Consider the following scenario.Two friends,Rachel and Joey,enjoy baking bread and making apple pies.Rachel takes two hours to bake one loaf of bread and one hour to make one pie.Joey takes four hours to bake one loaf of bread and four hours to make one pie.If Rachel and Joey decide to specialize in order to maximize their combined output,who should produce what?
A) Joey should specialize in making pies because he has an absolute advantage.
B) Rachel should specialize in making pies and Joey should specialize in making bread.
C) Joey should specialize in making pies and Rachel should specialize in making bread.
D) Rachel should specialize in making bread and pies because she has a comparative advantage in both.
E) Rachel should not specialize because she is better at producing both.

Consider the Following Scenario