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.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.4P
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![3. Let Robinson Crusoe's Production Possibility curve be given by the equation:
ƒ²/2 + 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 Pf = 5, and Pg = 1,
determine his productive optimum Q* and consumption optimum C. (Graph
the results).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2Fc74b2859-5170-41e7-ba0f-f26fb9733fe1%2F3mk0tna_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Let Robinson Crusoe's Production Possibility curve be given by the equation:
ƒ²/2 + 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 Pf = 5, and Pg = 1,
determine his productive optimum Q* and consumption optimum C. (Graph
the results).
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