1. Robinson Crusoe happily lives by himself on a little island eating shrimp and mangos. He is able to catch one pound of shrimp per hour he spends shrimping, and he can collect 15 mangos per hour. These rates are the same no matter how much time he spends in each activity. He seeks a work-life balance, so he will not work more than six hours a day. A) Draw Mr. Crusoe's production possibilities curve/frontier. Make sure that you include units on the axes. B) What is the per-unit opportunity cost of one pound of shrimp?
1. Robinson Crusoe happily lives by himself on a little island eating shrimp and mangos. He is able to catch one pound of shrimp per hour he spends shrimping, and he can collect 15 mangos per hour. These rates are the same no matter how much time he spends in each activity. He seeks a work-life balance, so he will not work more than six hours a day. A) Draw Mr. Crusoe's production possibilities curve/frontier. Make sure that you include units on the axes. B) What is the per-unit opportunity cost of one pound of shrimp?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. Robinson Crusoe happily lives by himself on a little island eating shrimp and mangos. He is able to
catch one pound of shrimp per hour he spends shrimping, and he can collect 15 mangos per hour.
These rates are the same no matter how much time he spends in each activity. He seeks a work-life
balance, so he will not work more than six hours a day.
A) Draw Mr. Crusoe's production possibilities curve/frontier. Make sure that you include units on the
axes.
B) What is the per-unit opportunity cost of one pound of shrimp?
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what accounts for the shape of the PPC? In other words, what is it about the relationship between catching and gathering mangos that explains the shape
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