Assume there is a two person economy, where they have only fish and mangos. Susan can pick 18 mangos per day or catch 6 fish per day. Tom can pick 6 mangos per day or catch 10 fish. Each work 5 hours per day. a. Draw their individual production possibility curves (assuming constant marginal returns). b. Draw their group production possibility curve. (Hint: find 3 points- 2 axis points and the specialization point).

Assume there is a two person economy, where they have only fish and mangos. Susan can pick 18 mangos per day or catch 6 fish per day. Tom can pick 6 mangos per day or catch 10 fish. Each work 5 hours per day. a. Draw their individual production possibility curves (assuming constant marginal returns). b. Draw their group production possibility curve. (Hint: find 3 points- 2 axis points and the specialization point).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 6P

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