If Masha devotes all her time to making cookies, she can make 3 pounds of cookies an hour, and if she devotes all her time to baking bread, she can make 2 pounds of bread an hour. If Sasha devotes all his time to making cookies, he can make 4 pounds of cookies an hour, and if he devotes all his time to baking bread, he can bake 5 pounds of bread an hour. Which of the following is true?
If Masha devotes all her time to making cookies, she can make 3 pounds of cookies an hour, and if she devotes all her time to baking bread, she can make 2 pounds of bread an hour. If Sasha devotes all his time to making cookies, he can make 4 pounds of cookies an hour, and if he devotes all his time to baking bread, he can bake 5 pounds of bread an hour. Which of the following is true?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If Masha devotes all her time to making cookies, she can
make 3 pounds of cookies an hour, and if she devotes all
her time to baking bread, she can make 2 pounds of bread
an hour. If Sasha devotes all his time to making cookies, he
can make 4 pounds of cookies an hour, and if he devotes all
his time to baking bread, he can bake 5 pounds of bread an
hour. Which of the following is true?
There will be no gains from trade for Sasha and Masha.
Masha has an absolute advantage in at least one of the
goods
Both Sasha and Masha would agree to trade 1 cookie for
1 pound of bread.
Sasha is better-off by himself
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