Use the graphs below to answer questions 7 through 10. PAM ALEX Cakes 1O 2 10y ? Cakes Lox-1X 10 10 -X 6 Pies Pies 0 0 10 For Alex, the opportunity cost of 1 pie is cost of 1 pie is cake(s); for Pam, the opportunity 7. cake(s)./ 2/2 1 2/3, 2 b. 12 2 1/2 1 d. a. C. For Alex, the opportunity cost of 1 cake is cost of 1 cake is 8. pie(s); for Pam, the opportunity pie(s). 2/3; b. 1½; 1 2/3; 2 a. d. C. Alex has a comparative advantage in 9. and Pam has a comparative advantage in cakes; pies pies eakes a. cakes; cakes C. b. pies, pies d. If Alex and Pam specialize according to comparative advantage, their combined output will 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 2 1. Oy-ly 10 210 10 10 1l

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
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Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 18PAE
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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.

Use the graphs below to answer questions 7 through 10.
PAM
ALEX
Cakes
1O
2
10y ?
Cakes
Lox-1X
10
10
-X
6
Pies
Pies
0
0
10
For Alex, the opportunity cost of 1 pie is
cost of 1 pie is
cake(s); for Pam, the opportunity
7.
cake(s)./
2/2 1
2/3, 2
b.
12 2
1/2 1
d.
a.
C.
For Alex, the opportunity cost of 1 cake is
cost of 1 cake is
8.
pie(s); for Pam, the opportunity
pie(s).
2/3;
b.
1½; 1
2/3; 2
a.
d.
C.
Alex has a comparative advantage in
9.
and Pam has a comparative advantage in
cakes; pies
pies eakes
a.
cakes; cakes
C.
b.
pies, pies
d.
If Alex and Pam specialize according to comparative advantage, their combined output
will 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 2
1.
Oy-ly
10 210
10 10
1l
Transcribed Image Text:Use the graphs below to answer questions 7 through 10. PAM ALEX Cakes 1O 2 10y ? Cakes Lox-1X 10 10 -X 6 Pies Pies 0 0 10 For Alex, the opportunity cost of 1 pie is cost of 1 pie is cake(s); for Pam, the opportunity 7. cake(s)./ 2/2 1 2/3, 2 b. 12 2 1/2 1 d. a. C. For Alex, the opportunity cost of 1 cake is cost of 1 cake is 8. pie(s); for Pam, the opportunity pie(s). 2/3; b. 1½; 1 2/3; 2 a. d. C. Alex has a comparative advantage in 9. and Pam has a comparative advantage in cakes; pies pies eakes a. cakes; cakes C. b. pies, pies d. If Alex and Pam specialize according to comparative advantage, their combined output will 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 2 1. Oy-ly 10 210 10 10 1l
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