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Medieval Madams

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Medieval Madams
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  • The Annual Medieval Ball is just one month away and all the women of Venetia are in search of the finest gown & complementary headdress to attract the attention of the town's most eligible bachelors. Kate & Amelia are two producers that produce both items.
  • I have been in such a scurry trying to keep up with the production of headdresses while working on my iconic gowns.
  • MEDIEVAL MADAMS By: Marie Pontius 
  • Oh Kate, you have no idea! Compared to you, I am not much of a fast worker myself. You work twice as fast and more efficiently, therefore making you hold the absolute advantage!
  • But, when I make more gowns than headdresses, I lose more headdresses than you! And even when I make more of headdresses than gowns, I still lose more gowns than you do. You hold a comparative advantage because you have a lower opportunity cost compared to mine.
  • OK so, I know that opportunity costs are the things or benefits I lose because of my choice to pursue another. And you're saying that I lose less benefits than you, which causes me have the comparative advantage.Well... what can we do with that?
  • Oh then, we must do what is logical and work together to produce more efficiently for the ball! Everything will be of the best quality because we are working at what we're most skilled at. But, how should we go about this?
  • I'm saying that it would be within the interest of both of us if we were to join forces. Everyone knows me for my iconic & clean-cut gowns. And you produce headdress quite well without much opportunity cost. Perhaps we each can specialize or become experts and concentrate at the one thing we do best.
  • Well, we must first assign the specific assignments for each party to focus on in order to engage in the division of labor. In the end, we'll come together as a whole to meet the final goal.
  • The two producers develop an economic interdependence between themselves, in which Kate relies on Amelia to supply their business with headdresses & Amelia relies on Kate to supply the business with her iconic gowns.
  • In the end, Kate & Amelia efficiently supplied the women of Venetia with a wide selection of gowns & headdresses, and everyone is left satisfied with their purchases.-As principle 5 states, "Trade makes people better off". 
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