Perhaps more surprisingly, Crusoe will also benefit from the deal. Since he gets 19 bushels of berries from Friday, he only needs 31 more bushels to meet his personal requirement, which will require only 15.5 hours of labor. The 100 bamboo poles he uses himself plus the 75 he plans to trade will require 175/10 = 17.5 hours of labor. Therefore he will spend 33 hours on these two tasks, instead of the 35 hours he spent in the past.  |
|
|
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 |
|
