Mark and Julie are going to sell brownies and cookies for their third annual fun

Question

Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make 15 brownies or 15 cookies. Based on this information, _____ has the comparative advantage in making brownies and _____ has the comparative advantage in making cookies. Julie; Mark Mark; Mark Julie; Julie Mark; Julie
Mark and Julie are going to sell brownies and cookies for their third annual fundraiser bake sale. In one day, Mark can make 40 brownies or 20 cookies, and Julie can make 15 brownies or 15 cookies. Based on this information, _____ has the comparative advantage in making brownies and _____ has the comparative advantage in making cookies. Julie; Mark Mark; Mark Julie; Julie Mark; Julie

Explanation / Answer

Answer

Mark; Julie
The comparative advantage depends on the lower opportunity cost
the opportunity cost of unit x=quantity of unit y/quantity of unit x
the opportunity cost of brownies for Mark=20/40=0.5 cookies
the opportunity cost of brownies for Julie=15/15=1 cookies
so Mark has comparative advantage in brownies and Julie in Cookies

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