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Suppose that each person is initially self-sufficient. In a six-day week, Robin produces and consumes 32 coconuts and 4 fish, and Terry produces and consumes
Suppose that each person is initially self-sufficient. In a six-day week, Robin produces and consumes 32 coconuts and 4 fish, and Terry produces and consumes 3 coconuts and 3 fish. Show that specialization and exchange (at a rate of 3 coconuts per fish) allows Robin to consume more coconuts and the same number of fish and allows Terry to consume more coconuts and the same number of fish.
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