Question

Assume millerville was producing 30 scooters and 10 helicopters before specialization. if millerville wanted to maintain production of 30 scooters, would they benefit from trade with jamestown if the terms of trade were set such that one scooter is traded for one helicopter?

Answer 1

As long as the production times and price points were simular then it would. However, with assuming it costs much more of a hellicoper then it does for a scooter to be produced they would definitly benefit from trading one schooter for one helicopter with Jamestown. They will benefit due to time and money that is being saved.