What is the price range at which: (1) trade would occur between Amy and Penny, and (2) both Amy and Penny would be better off?
Gains from trade Suppose Amy and Penny are housemates and there are two chores that need to be completed: cooking meals and laundry. Assume the hours needed to cook a meal or finish a basket of laundry are different for Amy and Penny and are described in the table below. 1 MEAL 1 BASKET AMY […]