Olivia bakes cakes and Andrew grows corn. Olivia and Andrew both like to eat cake and eat corn. In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

a. Olivia cannot grow corn and Andrew cannot bake cakes.

b. Olivia is better than Andrew at baking cakes and Andrew is better than Olivia at growing corn.

c. Olivia is better than Andrew at baking cakes and at growing corn.

d. Both Olivia and Andrew can benefit from trade in all of the above cases.

Question

Stacy Fitzpatrick

Business

8 May, 08:13

Olivia bakes cakes and Andrew grows corn. Olivia and Andrew both like to eat cake and eat corn. In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

a. Olivia cannot grow corn and Andrew cannot bake cakes.

b. Olivia is better than Andrew at baking cakes and Andrew is better than Olivia at growing corn.

c. Olivia is better than Andrew at baking cakes and at growing corn.

d. Both Olivia and Andrew can benefit from trade in all of the above cases.

+3

Answers (1)

Know the Answer?

Allyson · Answer 1

Both Olivia and Andrew can benefit from trade in all of the above cases.

Explanation:

Both Olivia and Andrew can benefit from trade in all of the above cases.