You are the sole survivor of a shipwreck on a desert island. You do not expect to be rescued. You can either use your time to grow food to consume immediately, or to build new tools and buildings (capital) which will increase your supply of food in future years. a) Sketch your initial production function (total output of food + capital in terms of your labour input), and show how to turn this into a feasible set. Show your optimal choice of how you spend your time, assuming you initially consume everything you produce.

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.