1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Fish 25 Coconuts 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5;
1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Fish 25 Coconuts 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5;
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains Rrom Trade
Section3.2: Comparative Advantage: The Driving Force Of Specialization
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Transcribed Image Text:1. Assume you are on an iceland, where you can produce different combinations of
coconuts and fish that can be harvested in a given week. The table below shows these
combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the
two.
Coconuts
Fish
25
3
15
4
12
5
a) Draw PPF using the information from this table;
b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5;
c) Calculate the slope of the PPF if you increase their harvest from 3 to 5;
d) Will you harvest 5 coconuts and 12 fish on any day of the week? Why?
e) Will you harvest 5 coconuts and 4 fish on any day of the week? Why?
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