Not a Zero-Sum Game - Ludwig von Mises Institute
Not a Zero-Sum Game - Ludwig von Mises Institute
Not a Zero-Sum Game - Ludwig von Mises Institute
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8%<br />
9;<br />
SuperJack and InferJoe:<br />
A Numerical Illustration<br />
@ Imagine a world with two people: SuperJack and InferJoe.<br />
@ Let's assume that SuperJack and InferJoe consume only<br />
two products: BREAD (B) and GARMENTS (G).<br />
@ SuperJack is better than InferJoe at producing<br />
everything-both B and G-but not equally better.<br />
@ SuperJack makes BREAD twice as fast as InferJoe and he<br />
makes GARMENTS three times as fast.<br />
@ We use time (hours of labor) like any other resource<br />
subject to being saved, and not as a measure of value.<br />
ote the emphasis on the fact that SuperJack is not equally<br />
N better than InferJoe in producing both BREAD and GAR-<br />
MENTS. SuperJack is even better than InferJoe at producing<br />
GARMENTS than at producing BREAD. Thus, in any trade, they<br />
will have different opportunity costs, which is the key to understanding<br />
the phenomenon.<br />
In order to isolate the effect of the division of labor itself, we<br />
assume that the abilities (productivity) of InferJoe and SuperJack<br />
remain constant and do not improve with specialization.