# Use the graphs below to answer questions 7 through 10.PAMALEXCakes1O210y ?CakesLox-1X1010-X6PiesPies0010For Alex, the opportunity cost of 1 pie iscost of 1 pie iscake(s); for Pam, the opportunity7.cake(s)./2/2 12/3, 2b.12 21/2 1d.a.C.For Alex, the opportunity cost of 1 cake iscost of 1 cake is8.pie(s); for Pam, the opportunitypie(s).2/3;b.1½; 12/3; 2a.d.C.Alex has a comparative advantage in9.and Pam has a comparative advantage incakes; piespies eakesa.cakes; cakesC.b.pies, piesd.If Alex and Pam specialize according to comparative advantage, their combined outputwill be:10.9 cakes and 10 pies.19 cakes and 16 pies.a.10 cakes and 6 pies.15 cakes and 20 pies.C.b.d.Cex 21.Oy-ly10 21010 101l

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I need help with questions 9 and 10. For question 9, since the x and y value are the same, I dont know how to identify in what type of production Pam has a comparative advantage in. For question 10, I do not understand how to calculate the combined output according to each person's specialization.

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Step 1

Production possibility of Alex and Pam:

Step 2

To find Comparative advantage we must know out of both Alex or Pam who is more efficient in producing cakes and who is more efficient in producing pies.

The table below shows the opportunity cost of both Alex and Pam In producing cakes and pies:

Step 3

Therefore, the table can be explained as following:

Alex has lower opportunity cost in producing cakes as he has to sacrifice just 0.67 pie while Pam has to sacrifice 1 pie in producing 1 cake. Therefore, Alex specializes i...

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