申論題

2. Mary can make 40 cakes or 40 donuts per hours and Kevin can make 6 cakes or 30 donuts per hour. Both of their PPFs are straight lines, and each works for one hour. Suppose every consumer likes to buy 1 cake together with 1 donut.

(b) Suppose that they decide to specialize and trade. What is the minimal amount of cake or donut that Kevin would be willing to accept for selling one unit good to Mary?