When the islands delegates offers to give you 1200 fish in e



When the island\'s delegates offers to give you 1,200 fish in exchange for 500 coconuts, you accept his offer? Why or why not?
Coconuts 0Tx Coconuts 500 500 O, 1500 Fish 2500 Fish

Solution

For Home country : 1 fish= 0.33 Coconut forgoing, for 1 Coconut= 3 fish have to be foregone

For neighbouring country: 1 Fish = 0.2 coconut , 1 Coconut= foregoing 5 fish

I would not accept the given offer because the trade leaves me at a level of consumption which is less than what i can produce myself.

 When the island\'s delegates offers to give you 1,200 fish in exchange for 500 coconuts, you accept his offer? Why or why not? Coconuts 0Tx Coconuts 500 500 O,

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