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Question: a which baker has an absolute advantage in pie production...

Question details

The following graphs illustrate the production possibilities available to Donte and Sarah with 8 hours of labor in their bakery. Assume they can produce and/or trade fractions of pies and strudels. Answer the following questions according to these graphs 2 9 6 Donte Sarah 10 15 13 12 10 3 0 1 23 4 5 6 7 8 9 1011 12131415 0 1 2 3 4 5 6 7 8 9 10 11 1213 1415 Strudels Strudelsa) Which baker has an absolute advantage in pie production?

b) Which baker has an absolute advantage in strudel production?

c) Which baker has a comparative advantage in pie production?

d) Which baker has a comparative advantage in strudel production?

e) The terms of trade that would be acceptable to both Donte and Sarah are 1 pie for at least _____ strudels and no more than _____ strudels.

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