ECON 1000 Lecture Notes - Lecture 3: Opportunity Cost
11 Apr 2016
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How much of goods each country produces and consumer. If decide to exchange 900 tons wheat from canada for 120 computers from. Canada decides produce 3400 tons of wheat and therefore 160 computers, selling extra 900 tons to japan. Able to achieve infeasible point on graph with trade (for both) Because canada better at wheat than computers. Japan has lower opportunity cost to make computers. Japan bigger share of gains when agreed" price closer to canada"s opportunity costs (canada gains but not as much)
