Both Amy and Brad produce and consume apple pie and ice cream. In one hour, Brad makes five apple pies or ten gallons of ice cream while Amy makes fifteen apple pies or fifteen gallons of ice cream. Based on the above information, one can correctly conclude that .

Amy has absolute advantage in the production of Apples pies and ice cream.

Amy has comparative advantage in the production of Apple pies.

Brad has a comparative advantage in production of ice creams

Amy should specialise in the production of Apple pies, brad should specialise in the production of icecream

Explanation:

A person has comparative advantage in production if he produces at a lower opportunity cost when compared with other people.

Brad's opportunity cost:

In producing apple pies = 10 / 5 = 2

In producing ice cream :5 / 10 = 0.5

Amy's opportunity cost:

In producing apple pies : 15/15 = 1

In producing icecreams : 15/15 = 1

Amy has the lower opportunity cost when compared with Brad in producing apples pies. Therefore, she has comparative advantage in the production of Apple pies.

Brad has the lower opportunity cost when compared with Amy in producing ice cream. Therefore, he has comparative advantage in the production of ice cream.

A person should specialise and trade the good for which she has a comparative advantage.

A person has absolute advantage in the production of a good or service If he produces more quantity of the good when compared with other people.

Amy has absolute advantage in the production of both goods.

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.