Crusoe has 8 dozen eggs, while Friday has no eggs but owns many chickens from which he expects to obtain eggs in the future. The relevant portions of their value scales are shown at right. Each value scale is consistent with both (1) the concept of a good and (2) the principle of time preference: |
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Crusoe
9 dozen eggs now
9 dozen eggs a year from now
8 dozen eggs now
8 dozen eggs a year from now stock: 8 dozen eggs |
Friday
9 dozen eggs now
8 dozen eggs now
9 dozen eggs a year from now
8 dozen eggs a year from now stock: 0 eggs, many chickens |
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