Question
Imagine that the inhabitants of the Magdalen Islands eat exclusively salted cod prepared according to a strict century-old method (1 kg of salt for 1
Imagine that the inhabitants of the Magdalen Islands eat exclusively salted cod prepared according to a strict century-old method (1 kg of salt for 1 kg of cod) and that the inhabitants of Grosse le and le d'Entre extract salt and fish cod with constant returns. each of the 500 inhabitants of Grosse le is able to extract 0.8 kg of salt per day worked and to capture 1 kg of cod per day of fishing while the 400 inhabitants of Entry Island are able to extract 0.4 kg of salt per day worked and to catch 1 kg of cod per day of fishing.
Question:
Draw theproduction possibility frontier(PPF) anddetermineProductionandConsumptionUnderAutarky.
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