Jenn's worst terms of trade and Jeff's best terms of trade     The best Jeff could ever hope to do is to convince Jenn to trade 2 images for 1 page. If Jenn agrees to these terms of trade she realizes no gains from trade, since without trade Jenn's opportunity cost for 1 page is 2 images. These terms are labeled Jenn's Worst Trades because they are the same as her no-trade PPF.

    Under these terms Jeff can trade to any point along the line labeled Jeff's Best Trades. These are the best terms of trade Jeff could ever negotiate with Jenn, as anything better would make her worse off than without trade. Not only do these terms enable Jeff to attain bundles beyond those available on his no-trade PPF, but he is able to do considerably better that along the STOR line.

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