This is the simplest I can read on this topic.images

Suppose you and I live in adjacent apartments. Now consider the following ways in which we might satisfy two of our needs: food and a clean habitat.

In scenario A, I cook my own meals and clean my own bathroom, and you do the same for yourself.

In scenario B, you pay me to cook your meals, and I pay you to clean my bathroom.

In scenario C, I pay you to cook for me and clean my bathroom, and you pay me to cook your meals and clean your bathroom… What might make each of these three scenarios desirable? Continue reading