Anita Is a Wonderful Baker and Can Bake 10 Cakes

question 49

Multiple Choice

Anita is a wonderful baker and can bake 10 cakes in a day, but then has no time left to make cookies. If she bakes only cookies, she can make 200 cookies in a day. John can make equally delicious cakes and cookies but can only make seven cakes or 100 cookies in a day. Based on this information, which of the following statements is true?

• A) Anita has the comparative advantage in the production of cakes.
• B) John has the comparative advantage in the production of cakes.
• C) John has the absolute advantage in the production of cookies.
• D) Anita has the comparative advantage in the production of both cakes and cookies.

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Definitions:

Stock Merchandise

The process of purchasing, handling, and displaying inventory in retail.

Job Description

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The current holder of a position or office, typically in a political or organizational context.

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