/894265/View Assignment: The Production Possibilities Model Part 1 Imagine that you are stranded on a small island. In order to survive, you have to spend 8 hours a day on two basic "Survival" tasks - gathering coconuts and catching fish. This activity can be described by the Production Possibilities Schedule immediately below. Possibilities Coconuts Fish A 24 0 B 20 C 12 N 0 Use the data from the chart to answer answer each of the following questions: 1. Determine the opportunity costs you would incur to catch the first, second and third fish respectively. (3) 2. Is the 'law of increasing opportunity costs' at work here? Explain your answer. (1) 3. What's the shape of the PPC in this case? What does this shape signify? (1) 4. If the you are operating on your PPC, what main assumption has been met? (1) 5. Suppose you increase your workday from 8 to 12 hours per day. What would likely happen to the PPC? (1) 6. Explain what effect a ladder and a fishing rod likely would have on the your PPC. (2) Part 2 19 AOC