Consider two individuals - Marquis and Serena - each of whom would like to wear sweaters and eat tasty food.The gains from trade between Marquis and Serena are most obvious in which of the following cases?
A)Marquis is very good at knitting sweaters and at cooking tasty food,but Serena's skills in both of these activities are very poor.
B)Marquis and Serena both are very good at cooking tasty food,but neither has the necessary skills to knit a sweater.
C)Marquis's cooking and knitting skills are very poor,and Serena's cooking and knitting skills are also very poor.
D)Marquis's skills are such that he can produce only sweaters,and Serena's skills are such that she can produce only tasty food.

Question

Quizplus · Accepted Answer

Gains from trade are most obvious when each individual specializes in what they are best at and then trades with the other. In option D, Marquis can produce only sweaters and Serena can produce only tasty food, allowing them to trade and both benefit from each other's specialization.

Consider Two Individuals - Marquis and Serena - Each of Whom