Question

7. If Elizabeth can make 3 pies or bake 6 cakes per hour and Benjamin can make 2 pies or bake 8 cakes per hour, _____. Benjamin should specialize in making pies Benjamin has the comparative advantage in making pies Elizabeth should specialize in making pies Elizabeth has the comparative advantage in baking cakes

Answer 1

Elizabeth should specialize in making pies.

Step-by-step explanation:

Being that she makes pies faster than Benjamin and he makes cakes faster than her. Her area of specialization should be pies.

Answer 2

Elizabeth should specialize in making pies.

Step-by-step explanation:

Elizabeth, at one hour, makes more pies than Benjamin. This shows that she has a great ability to prepare this type of dessert. For this reason, she must specialize in pies, since she has great ability and agility in preparing them.