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

Quizplus · Accepted Answer

In all the given scenarios, both Olivia and Andrew can benefit from trade due to specialization and comparative advantage.

Olivia Bakes Cakes and Andrew Grows Corn