Answer
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Work Step by Step
(a) Pat has the absolute advantage in making pizza as compare to Kris.
The reason is that it takes her less time to make one pizza than Kris. Pat also has a comparative advantage in pizza making because her opportunity cost of making each pizza is lower than Kris’s.
(b) Pat would trade pizza in exchange for root beer because she has a comparative advantage.
(c) The highest price for pizza in gallons of root beer that would benefit both roommates is 2/3 of a gallon, above this price Kris would be better off making her own pizza.
The lowest price is 1/2 a gallon, below this price Pat would be able to brew more root beer at the same cost and it would not benefit her.
