Suppose That Opportunity Costs Are Constant and That Fred Can

question 229

Multiple Choice

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can produce a maximum of eight pies or two cakes in a day. Fred has an comparative advantage in the production of

• A) cakes.
• B) pies.
• C) both cakes and pies.
• D) neither cakes nor pies.

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