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Lect 2 _Gains From Trade_1101
Lect 2 _Gains From Trade_1101
from Trade
Intermediate situation:
The farmer can raise cattle as well, but not so good at it.
The rancher can grows potatoes, too. But his land is
not well-suited for potatoes.
Why? 須考慮比較利益
If there is no trade,
the farmer chooses
8 this production and
consumption.
4 A
0 16 32 Potatoes (ounces)
Meat (ounces)
24
If there is no trade,
the rancher chooses
this production and
consumption.
12 B
0 24 48
Potatoes (ounces)
Meat (ounces)
Farmer's
consumption
with trade
8 Farmer's
production and
consumption
5 A* without trade
4
A Farmer's
production
with trade
0 32 Potatoes (ounces)
16 17
Meat (ounces)
24 Rancher's
production
with trade
Rancher's
consumption
18 with trade
13
B* Rancher's
production and
B
12 consumption
without trade
0 12 24 27 48
Potatoes (ounces)
比較利益建⽴在機會成本之上
*貿易條件居於兩者機會成本中間時成
⽴
例:⼀盎司⽜換三盎司⾺鈴薯(介於
四、⼆盎司⾺鈴薯)
David Ricardo
In his 1816 book Principles of Political Economy and
Taxation, David Ricardo developed the principle of
comparative advantage as we know it today.