Given the Production Possibility Tables for First and Second Bakeries

question 62

Multiple Choice

Given the production possibility tables for First and Second Bakeries presented below,what must be true?

• A) First Bakery has a comparative advantage in the production of both goods.
• B) Second Bakery has a comparative advantage in the production of pies.
• C) First Bakery has a comparative advantage in the production of pies.
• D) Neither bakery has a comparative advantage.
• E) Neither bakery has an absolute advantage.

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