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Given the Production Possibility Tables for First and Second Bakeries

Question 105

Multiple Choice

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


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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