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Currently he is producing all of his own food, and to maximize his utility Graham is producing/consuming twice as much rice as noodles. Additionally, Graham's
Currently he is producing all of his own food, and to maximize his utility Graham is producing/consuming twice as much rice as noodles. Additionally, Graham's production possibilities frontier is given by the equation R=802N, where R is cups of rice and N is cups of noodles. Assuming Graham is allocating his time efficiently, his consumption will be the same as if he could buy rice and noodles in a competitive market where the price of rice is $3 per cup, the price of noodles is
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