Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!
Hey Karla, how's your chocolate covered strawberries business so far?
Hey Steve, sadly I had to pause deliveries today because I didn't have enough strawberries
Karla and Steve are small business owners. Steve makes flower bouquets and Karla makes chocolate covered strawberries
well I think I can help you with that. As you can see I grow strawberries on my land. I have an idea, I think we can help each othr out
what's your idea?
Since I specialize in making strawberries and your family specializes in making wrapping paper which I don't have anymore. If we exchange goods, We can divide the labor to produce our services smoothly.
This would also be their absolute advantage
That sounds like a great idea. So me making wrap paper and you picking the strawberries concludes our comparative advantage which is when they can produce a good or service at a lower opportunity cost than someone else
Exactly, lets put it on a chart. Come lets head inside
Productivity Chart
strawberry paper
Karla 45/20 20/45
Steve 5/95 94/5
Opportunity cost
Strawberry Wrap
Paper
Karla
steve
1/2 wp. 2strawberry
10 wp. 0.1 strawberry
Okay I understand
The charts show that if we become economic interdependence, our business will work better
LETS DO IT!