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Exchange in an island economy.robin and terry are stranded on a deserted island and consume two products, coconut and fish. In a day, robin can catch 2 fish or gather 10 coconuts, and terry can catch 1 fish or gather 1 coconut.
output per day: Robin Terryfish coconuts fish coconuts2 10 1 1terry has a comparative advantage fishing and robin has a comparative advantage in coconuts explain please how come?
suppose that each person is initially self sufficient. In a six-day week, robin produces and consumes 40 coconuts and 4 fish, and terry produces and consumes 4 coconuts and 2 fish
Now supposed robin and terry consume the same number of fish as in the self-sufficient outcome, then specialization and exchange allow robin to consume ---------additional coconuts and terry consumes ------------------additional coconuts.
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