Question

Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cook's time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour. Please answer the four questions below.

A) Which cook has the absolute advantage in baking cakes?
B) Which cook has the absolute advantage in making pizzas?
C) Which cook has the comparative advantage in baking cakes?
D) Which cook has the comparative advantage in making pizzas?

Answer 1

Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cook's time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour

Which cook has the absolute advantage in baking cakes?

Jean has the absolute advantage in baking cakes

Which cook has the absolute advantage in making pizzas?

Jean has the absolute advantage in making pizzas

Which cook has the comparative advantage in baking cakes?

Vincent has the absolute advantage in baking cakes

Which cook has the comparative advantage in making pizzas?

Vincent has the absolute advantage in making pizzas

Step-by-step explanation: