Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making. making Kate Julia Time to Make a Pie Time to Make a Cake 45 minutes 60 minutes Multiple Choice both ples and cakes; neither ples nor cakes pies, cakes 90 minutes 75 minutes neither pies nor cakes; both pies and cakes cakes, pies while Julia should specialize in

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.