Level 4: Gains from Trade with Absolute Advantage Having determined that you should specialize in fishing, find a trade that will make you and Friday better off. Recall that Friday produces 350 calories of fish per hour or 3.5 logs of firewood per hour and to survive, he needs 7 logs and 3500 calories of fish. While you produce 500 calories or 4log per hour and to survive you must collect 32 logs and 2000 calories of fish. Friday PPF Terms of Trade Consumption What are the rules of trading? Collect Wood: 1.7 logs 1 Wood (logs) for 150 fish (cals) Gains From Trade Y Your PPF Friday's PPF Terms of Trade Consumption What are the rules of trading? Collect Wood: 1.7 logs 1 Wood (logs) for: 150 fish (cals) How much do we trade? Give fish (cals): 1000 0 0 42 Collect Fish: 5750 cals Receive wood (logs): 6.7 Previous Next