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Jimmy and Robert are on an island where they catch fish and pick coconuts. In one...

Jimmy and Robert are on an island where they catch fish and pick coconuts. In one day Jimmy can catch 10 fish or pick 15 coconuts. Robert can catch 8 fish or pick 4 coconuts. Draw a production possibility frontier for Jimmy and Robert COMBINED. Label the slopes and intercepts. If they want to get 6 fish between them, how many coconuts can they get? Indicate this point on your graph. Who has a comparative advantage in Fish and Who has one in coconuts?

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Answer #1

In the above diagram,PPF of Jimmy shows the combination of coconut (15) and fish(10) he gets,whereas PPF of robert shows his part of coconut (11) and fish(8). At the point of getting 6 fish. we can see, at point RO in PPFR,robert gets 2 coconuts,whereas at point JO in PPFJ, jimmy gets 11 coconut.
Hence we can conclude that when both are getting 6 fish, jimmy has an advantage in coconut,and robert has an advantage in fish.

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