Pam and Max run a food truck that serves cupcakes. Before they open, they have 1 hour

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Pam and Max run a food truck that serves cupcakes. Before they open, they have 1 hour to spend making chocolate and vanilla cupcakes. The following table shows how many chocolate and vanilla cupcakes they can each make in 1 hour.
Pam and Max run a food truck that serves cupcakes.

a. Does either Pam or Max have an absolute advantage in making either type of cupcake?
b. Based on comparative advantage, who should make chocolate cupcakes and who should make vanilla cupcakes?

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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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