Aaron and Charlotte find themselves on a deserted island. The only two activities available are fishing and hunting rabbits. In a full day, Aaron can catch 4 fish or 2 rabbits; in the same time, Charlotte can catch 3 fish or 6 rab- bits. Activities can be divided with no loss of efficiency. When left to their own devices, Aaron consumes 2 fish and Charlotte consumes 2 fish also.

a. How many rabbits can each person consume, acting alone?

b. What are each individual's marginal costs of fishing and hunting rabbits?

c. Explain how Aaron and Charlotte can improve their standard of living through specialization. If they decide to continue to consume 2 fish each, what is their gain from specialization and trade?