Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake

Question:

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage

A. Mary produces only pies

B. Tim produces both pies and cakes

C. Mary produces only cakes while Tim produces only pies

D. Tim produces only cakes while Mary produces only pies

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...