6.1 THE ORIGINS OF TRADE 冷 Assumption c62 goods: meat &potatoes o6 2 people: cattle rancher potato farmer Situation s rancher can produce only meat and farmer can produce only potatoes s rancher and farmer are each capable of producing the other good, but only at great cost6.1 THE ORIGINS OF TRADE ❖ Assumption 2 goods: meat &potatoes 2 people: cattle rancher & potato farmer ❖ Situation rancher can produce only meat and farmer can produce only potatoes. rancher and farmer are each capable of producing the other good, but only at great cost