Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, a mutually advantageous trade can be struck at a price of one apple pie for 1/3 gallon of ice cream.

Opportunity Cost

Opportunity cost refers to the benefit that is missed or given up when choosing one alternative over another.

Mutually Advantageous

A situation or agreement that provides benefits to all parties involved, often used in the context of trade or negotiations.

Ice Cream

A frozen dessert made from dairy products, such as milk and cream, often combined with fruits, flavors, or other ingredients.