Jenn and Kathy - comparative advantage     Suppose Jenn and Kathy are both producing 10 images. In the same time that Kathy can produce 50 pages, Jenn can only produce 20. What if they each decide to increase image production by 20 images bringing image output for each to 30 images? As we can see to the right, Kathy's page production falls by 20 pages, but Jenn's production falls by only 10 pages.

    Even though Kathy outproduces Jenn, Jenn still has a comparative advantage in image production because her opportunity cost for each image is only half a page, while Kathy's is a full page. As we will see, this still means that both can benefit from specialization and trade.

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