Suppose a bakery has 16 employees to be designated as bread bakers (B) and cake bakers (C), so that B + C = 16. Draw the production possibilities frontier for bread (y) and cakes (x) for the following...

Suppose a bakery has 16 employees to be designated as bread bakers (B) and cake bakers (C), so that B + C = 16. Draw the production possibilities frontier for bread (y) and cakes (x) for the following production functions:

a. y = 2B.⁵
and x = C.⁵

b. y = B and x = 2C.⁵

Why can asymmetric information between buyers and sellers lead to market failure when a market is otherwise perfectly competitive?