You and another volunteer are in charge of a bake sale for a local charity, at which

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You and another volunteer are in charge of a bake sale for a local charity, at which you are planning to sell cookies and cupcakes. Suppose you have a comparative advantage at baking cookies, and the other volunteer has a comparative advantage at baking cupcakes. Make a proposal to the volunteer about how to split up the baking. Explain how you can both gain from specializing, and why.

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Microeconomics

ISBN: 978-1259813337

2nd edition

Authors: Dean S. Karlan, Jonathan J. Morduch

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