Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

12. Homer is stranded on a deserted island called Springwater. Each week he forages the island and can collect 9 coconuts or catch 18 fish.

image text in transcribed
12. Homer is stranded on a deserted island called Springwater. Each week he forages the island and can collect 9 coconuts or catch 18 fish. a. Draw a production possibilities frontier for Homer. Put fish on the y-axis. (12) b. Assume Homer is lazy and he does not work most days, add a point labeled \"a\" on your PPF where his output could be. (_/1) c. Assume Homer is efficient. Add a point labeled \"b\" on your PPF (_/1) d. What is Homer's opportunity cost of picking 1 coconut? ( l1) e. A friendly pirate lands on Springwater. The pirates can get 10 coconuts or 30 fish. How should Homer and the pirate specialize? Explain how you determined your answer ( l2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Auditing An Introduction to International Standards on Auditing

Authors: Rick Hayes, Philip Wallage, Hans Gortemaker

3rd edition

273768174, 978-0273768173

Students also viewed these Economics questions