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In One Hour, Chloe Can Bake 24 Cookies or 12

Question 57

Multiple Choice

In one hour, Chloe can bake 24 cookies or 12 blueberry muffins; Zabeen can bake 6 cookies or 2 blueberry muffins. For mutually beneficial trade, Chloe should


A) bake muffins because she has a comparative advantage.
B) give up. Mutually beneficial trade is impossible in this situation.
C) bake cookies because she has an absolute advantage.
D) bake cookies because she has a comparative advantage.
E) bake muffins because she has an absolute advantage.

Correct Answer:

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