What advantages does this deal offer Friday? The 75 bamboo poles from Crusoe will satisfy Friday's annual requirement. If he spends 34.9 hours per year producing berries, then at his usual rate of production he can put out 34.9  1.75 = 61 bushels, thus meeting his personal requirement of 42 bushels plus the 19 bushels he needs for the trade. Whereas Friday used to spend 39 hours producing berries and bamboo poles, now he can spend more than 4 of those hours toward some other end more useful on his value scale.  |
|
|
Bamboo
Poles
per Year |
Bushels of
Berries
per Year |
Annual Hours
Producing
Bamboo Poles |
Annual Hours
Producing
Berries |
Total
Hours
of Labor |
| Crusoe |
100 | 50 | 10 | 25 | 35 |
| Friday |
75 | 42 | 15 | 24 | 39 |
| Crusoe: |
100/10 |
= |
10 |
bamboo poles per hour |
|
50/25 |
= |
2 |
bushels of berries per hour |
| Friday: |
75/15 |
= |
5 |
bamboo poles per hour |
|
42/24 |
= |
1.75 |
bushels of berries per hour |
| Proposed Trade: |
|
75 of Crusoe's bamboo poles |
|
for |
19 bushels of Friday's berries |
|
