Tom Takes 20 Minutes to Cook an Egg and 5

question 124

Multiple Choice

Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. Both individuals will be better off if

• A) they don't trade as no one has the comparative advantage in either of the two goods.
• B) Jerry trades sandwiches in exchange for eggs.
• C) they trade, no matter who trades sandwiches and who eggs.
• D) Tom trades sandwiches in exchange for eggs.