The whole point of making simplified models (economic or otherwise) is to reflect some underlying truth in a more grokkable form. But, if you remove the load bearing ideas when making the model it doesn’t provide any insight.
If all goods are perfect substitutes, then there is no trade. That’s all your model is saying. And that’s the same thing I was saying, though my previous post was less elegant about it. It doesn’t matter what the production functions look like: they key factor is the perfect substituiton on the demand side. And, as you said, redefining a Red point as 1/a Red points doesn’t change that conclusion.
The whole point of making simplified models (economic or otherwise) is to reflect some underlying truth in a more grokkable form. But, if you remove the load bearing ideas when making the model it doesn’t provide any insight.
If all goods are perfect substitutes, then there is no trade. That’s all your model is saying. And that’s the same thing I was saying, though my previous post was less elegant about it. It doesn’t matter what the production functions look like: they key factor is the perfect substituiton on the demand side. And, as you said, redefining a Red point as 1/a Red points doesn’t change that conclusion.