This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: : When one producer can produce a good at a lower opportunity cost . Tom Wilson 1 more Fish 1 more Coco Who has Comparative Advantage in Cocos _______________ Fish _______________ Since they have different Opportunity Costs Better Option. II. They should each Specialize Specialize : Each focus on one item, They must each Benefit: Will the Following Trades Take place? 1. 8 Fish for 12 Coconuts 2. 15 Coconuts for 5 Fish 3. 10 Fish for 10 Coconuts Toms new consumption Bundle is _________________ Wilsons new Consumption Bundle is _________________...
View Full Document
- Fall '07