Idris Elba is stranded on an island. He produces and consumes coconuts (C) and fish (F). He has 200 hours of labor available for producing F, where F = LF, and C, where C = LC. His utility for consumption is given by: UT = FC.

(a) What are the optimal levels of F and C? What is his utility?

(b) Suppose now he can trade, with a world price ratio of pF pC = 2 1 . If he continues to produce at the levels from part b), what will he consume once open to trade? What is his new level of utility?

(c) Suppose now that he can also adjust how much he produces, how does this change your answer to part c)?

(d) Graph your results to parts a) - d).