Below is a linear PPF for Molly. She makes goods X (pies) and Y (cupcakes).
Molly's PPF: Y = 200-4X
Option 1
Provide a linear equation for Jennifer. You can assume both girls have the same resources and the PPFs reflect 8 hours of work. Construct Jennifer's PPF such that the following stipulations are met:
(1) Molly has Absolute Advantage (AA) in Y (pies).
(2) Jennifer has Comparative Advantage (CA) in X (cupcakes).
* Try to explain your answer so others can see your approach and learn from you as well.
Option 2:
Explain Comparative Advantage in layman's terms (use no economics jargon).
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