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If kate and sarah both specialize in the good in which they have a comparative advantage the
If kate and sarah both specialize in the good in which they have a comparative advantage the
If Kate and Sarah both specialize in the good in which they have acomparativeadvantage, the total production of bread will be 12 loaves, and the totalproductionof cake will be 8 units. Thus, option C is correct.We can see from Kate'sProductionPossibility Frontier (PPF) that it will make 4 loaves of bread if it utilizes all of itsresourcesfor bread, and 8 units of cakes if it uses all of its resources for cakes.As a result,Katemust sacrifice 8 units of cake in order to make 4 loaves of bread, and 8/4 = 2 units of cake in order to make 1 loaf of bread. Therefore, manufacturing 1 loaf of bread for Kate has anopportunitycost of 2 units of cake.The SarahProductionPossibility Frontier(PPF)shows that Sarah will create 12 loaves of bread if all of itsresourcesare used to make bread.Therefore, option C is the ideal selection.Learn more aboutProductionPossibility Frontier(PPF)here:brainly.com/question/14543792#SPJ12Your question seems to be incomplete, but most probably the complete question was:Kate and Sarah own a bakery together. The two figures illustrate the production possibilities available to them if they work at their bakery for 8h a day. Answer the question using these figures. Sarah Breads (loaves) Breads (loaves) 0 O 1 2 3 4 5 6 7 9 10 11 12 13 14 Cakes (units) I 2 3 4 5 6 7 8 9 10 11 12 13 14 Cakes (units)If Kate and Sarah both specialize in the good in which they have a comparative advantage,the total production of bread will be 4 loaves, and the total production of cake will be 9 units.total production of bread will be 16 loaves, and the total production of cake will be 17 units.total production of bread will be 12 loaves, the total production of cake will be 8 unitstotal production of bread will be 8 loaves, and the total production of cake will be 8.5 units....