Question
Who specializes in the production of each product? After specialization, what is an example of a trade that would be beneficial for both of you
Who specializes in the production of each product? After specialization, what is an example of a trade that would be beneficial for both of you to make? (See below)
Right now you each split your time between gathering the two products. You currently gather and consume 16 pounds of berries and 4 pounds of squash, while your neighbor is gathering and consuming 6 pounds of berries and 2 pounds of squash. Show (both graphically and numerically) how specialization and then trade with each other can make both of you better off. Who specializes in the production of each product? After specialization, what is an example of a trade that would be beneficial for both of you to make?
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