@@princeolawale That is taken as given to understand how the trade can benefit both. you can try with any other combination until the resulting trade off makes both better off.
That's was given....not something you figure out. It's just one of an infinite number of trades that would create gains. Any trade that implies a price that falls between the two opportunity costs will create gains for both people. For example 5.1 ounces of meat for 15 ounces of potatoes would also work.....but the numbers would be hard to work with.
No, because the trade needs to imply a price that falls in between the opportunity cost for the farmer and the rancher. If the trade implies a price exactly equal to the opportunity cost for one of the people, that person would not agree to it because there's no use for them to trade....they would be paying a price exactly equal to what it costs them to produce it.
Thank you very much for this detailed and clear explanation. 💯
This was extremely helpful. Thank you so much!
These are really high-quality lectures, keep it up!!
Thank you! I will.
@@DrAzevedoEcon I'm surprised wher the trade of 15 and 5 came up from
Please can I get an explanation on that ?
@@princeolawale That is taken as given to understand how the trade can benefit both. you can try with any other combination until the resulting trade off makes both better off.
Thank you for the upload. Much appreciated.
First to watch, always detailed thanks doc
Thank you, very helpful
Amazing video!
Thank you for your video!!!!
Can you please explain Solow model of economic growth?
I’m surprised whrrr the trade of 15 and 5 came up from
Please can I get an explanation on that ?
That's was given....not something you figure out. It's just one of an infinite number of trades that would create gains. Any trade that implies a price that falls between the two opportunity costs will create gains for both people. For example 5.1 ounces of meat for 15 ounces of potatoes would also work.....but the numbers would be hard to work with.
@ thank you sir
i understand better now
Wouldnt the have to trade 20 oz potatoes for 5 oz og mea? (32/8 = 4)
No, because the trade needs to imply a price that falls in between the opportunity cost for the farmer and the rancher. If the trade implies a price exactly equal to the opportunity cost for one of the people, that person would not agree to it because there's no use for them to trade....they would be paying a price exactly equal to what it costs them to produce it.