That seems like a sensible way to set up the no-trade situation. Presumably the connection to trade is via some theorem that trade will result in pareto-optimal situations, therefore making comparative advantage applicable.
But I still wonder what the exact theorem is.
Then if you want to describe the pareto frontier that maximizes the amount of goods produced, it involves each person producing a good where they have a favorable ratio of how much of that good they can produce vs. how much of other goods-being-produced they can produce.
What do you mean by “favorable”? Is there some threshhold?
What do you mean by “involves each person producing”? Does it mean that they’ll exclusively produce such goods? Or does it mean they’ll produce at least some of such goods?
That seems like a sensible way to set up the no-trade situation. Presumably the connection to trade is via some theorem that trade will result in pareto-optimal situations, therefore making comparative advantage applicable.
But I still wonder what the exact theorem is.
What do you mean by “favorable”? Is there some threshhold?
What do you mean by “involves each person producing”? Does it mean that they’ll exclusively produce such goods? Or does it mean they’ll produce at least some of such goods?