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if mary can bake more cakes in one day than sarah can bake in one day, then sarah should not bake cakes. mary has a comparative advantage in baking cakes. sarah has a comparative advantage in baking cakes. mary has an absolute advantage in baking cakes. neither mary or sarah have the absolute advantage in baking cakes.

Respuesta :

Mary has an absolute advantage in baking cakes.

What is absolute and comparative advantage?

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people. According to economic theory, a person should specialise in the production of the good for which they have a comparative production in.

A person has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other people using the same quantity and quality of resources.

The concept of absolute advantage and comparative advantage was introduced by Adam Smith, a Scottish economist in 1776 when he used them to describe international trade.

To learn more about comparative advantage, please check: https://brainly.com/question/25139916

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