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Suppose you live on a deserted island and have decided that you will work 80 hours per week to make your island stay enjoyable.
Suppose you live on a deserted island and have decided that you will work 80 hours per week to make your island stay enjoyable. The chart below illustrates how many coconuts you could pick or fish you could catch in a week's time. Number of Coconuts Number of Fish 0 7 10 6 19 5 27 4 34 3 40 2 45 1 49 0 A. Draw the production possibility frontier. Label the vertical axis "number of fish" and the horizontal axis "number of coconuts". B. Calculate the (marginal) opportunity cost of an increase in the number of coconuts from 10 to 19. C. Is the opportunity cost the same for a movement from having 1 fish to 2 fish as it is for a movement from having 4 fish to 5 fish? Explain (Why does the result make sense?). D. Think of four reasons (specific to this example) why the production possibility frontier might shift outward. E. Why might the production possibility frontier for somebody else have a different shape and/or different vertical or horizontal intercept (where the curve hits the horizontal and vertical axes) than the one shown.
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