Question

Mark and julie are going to sell brownies and cookies for their third annual fundraiser bake sale. In one day, mark can make 40 brownies or 20 cookies, and julie can make 15 brownies or 15 cookies. With specialization, how many brownies and cookies will be made in one day for the bake sale?

Answer 1

Answer: 40 brownies and 15 cookies

Explanation:

Mark can make 40 brownies or 20 cookies

$Opportunity cost of brownie for Mark = \frac{20}{40} = 0.5$

Julie can make 15 brownies or 15 cookies.

$Opportunity cost of brownie for Julie = \frac{15}{15} = 1$

So, Mark has a comparative advantage in making brownies. So, mark will produce a total of 40 brownies and Julie will make a total of 15 cookies.