Practice: If Joe and Carla plan to specialize and trade, what should Joe produce?
Trading helps us reach levels of consumption that were previously unattainable. Team work makes the dream work!
Concept #1: Comparative Advantage and Trade
Practice: If Joe and Carla plan to specialize and trade, what should Carla produce?
Practice: Assume that Joe and Carla will trade Scrambled Eggs and Fresh Squeezed Orange Juice at a rate of 1.2 Eggs for 1 OJ. If Joe’s consumption after trade includes six eggs, what will be Carla’s consumption after trade?
