Inventory ^ PPF v Level 4: Gains from Trade with Absolute Advantage Having determined that you should specialize in fishing, find a trade that will make you and Friday better off. Wood : 0 logs Recall that Friday produces 350 calories of fish per hour or 3.5 logs of firewood per hour and to survive, he needs 7 logs and 3500 calories of fish. While you produce 500 calories or 4 logs per hour and to survive you must collect 32 logs and 2000 calories of fish. Fish : 0 cals Collect Wood: 6 hour Collect Fish: 6 hour Day 1. Daytime Schedule O hour 12 hour Collect Wood Collect Fish Idle Inventory ^ PPF v 8000 5000 7000 4000 6000 5000 3000 Fish (cals) 4000 Fish (cals) 2000 3000 2000 1000 1000 0 0 0 10 20 30 40 50 60 70 80 90 100 110 1... 0 10 20 30 40 50 60 70 80 90 100 110 1... Firewood (logs) Firewood (logs) Your PPF Friday's PPF Terms of Trade Consumption What are the rules of trading? Collect Wood: 40.9 logs 1 Wood (logs) for: 137 fish (cals) 42 0 Collect Fish: 685 cals 200 0 Trade 0 3000 How much do we trade? Give fish (cals): 3000 Start 0 3000