Suppose that each person is initially self-sufficient. In a 6-day week, Robin produces and consumes 32 coconuts and four fish, and Terry produces and consumes three coconuts and three fish. Show that...


Suppose that each person is initially self-sufficient. In a 6-day week, Robin produces and consumes 32 coconuts and four fish, and Terry produces and consumes three coconuts and three fish. Show that specialization and exchange (at a rate of three 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. Illustrate your answer with a graph like Figure 3.1 on page 78.



May 20, 2022
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