Question

On a remote island live Robinson and Friday. Robinson can produce 2 units of fish or 6 units of berry bushes per hour. Friday can produce 6 units of fish or 2 units of berry bushes per hour. Suppose they each work 10 hours a day.  

1. Suppose they haven’t met yet, and live separately.
   • First, let's consider their individual daily production:
     • Robinson's maximum production of berry bushes is___ units per day, and his maximum production of fish is__ units per day.
     • Friday's maximum production of berry bushes is  units per day, and his maximum production of fish is__ units per day.
   • Second, let's consider their individual daily consumption. Suppose they both view fish and berry bushes as perfect complements, at the rate of 1 unit of fish for 1 unit of berry bush:
     • Robinson's optimal consumption of berry bushes will be___ units per day, and his optimal consumption of fish is__ units per day.
     • Friday's optimal consumption of berry bushes is__ units per day, and his optimal consumption of fish is __ units per day.

Answer 1

1. Robinson's maximum production of berry bushes = 6 * 10 = 60 units per day and his maximum production of fish = 2 * 10 = 20 units per day.

2. Friday's maximum production of berry bushes is = 2 * 10 = 20 units per day, and his maximum production of fish is = 6 * 10 = 60 units per day.

3. Robinson's optimal consumption of berry bushes will be 20 units per day, and his optimal consumption of fish is 20 units per day.

4. Friday's optimal consumption of berry bushes will be 20 units per day, and his optimal consumption of fish is 20 units per day.

Explanation:

They both will consume 20 units of each good per day, because 20 number of maximum combination of fish and berry bushes can be made.