3. Let Robinson Crusoe's Production Possibility curve be given by the equation: f²/2 + g = 150 where f is the amount of fish and g is the amount of grain he can obtain. (think of g as plotted on the vertical axis and f as plotted on the horizontal axis). Robinson's marginal rate of substitution in consumption is MRSc = 9/f. (a) Find Robinson's production-consumption optimum R*. (b) If Robinson is discovered by a world market in which P = 5. and P. = 1.

3. Let Robinson Crusoe's Production Possibility curve be given by the equation: f²/2 + g = 150 where f is the amount of fish and g is the amount of grain he can obtain. (think of g as plotted on the vertical axis and f as plotted on the horizontal axis). Robinson's marginal rate of substitution in consumption is MRSc = 9/f. (a) Find Robinson's production-consumption optimum R*. (b) If Robinson is discovered by a world market in which P = 5. and P. = 1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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