Question

Dan and Patrick are stranded on a deserted island. They survive by catching fish and gathering coconuts. In one day, Dan can pick 15 coconuts or catch 5 fish and Patrick can pick 20 coconuts or catch 20 fish. They can divide their time in any way between the two tasks without any loss of efficiency. When alone, Dan chooses to consume 3 fish and Patrick chooses to consume 8 fish.

a. How many coconuts does each eat when alone? (How many is that total….?)

Answer #1

Opportunity cost of 1 fish for Dan = Total coconuts not
consumed/Total fish consumed = 15/5 = 3 coconuts

So, when Dan consumes 3 fish he gives up 3*(3 coconuts) = 9
coconuts. So he is left with 15 - 9 = 6 coconuts to consume.

Opportunity cost of 1 fish for Patrick = Total coconuts not
consumed/Total fish consumed = 20/20 = 1 coconut

So, when Patrick consumes 8 fish he gives up 8*(1 coconut) = 8
coconuts. So he is left with 20 - 8 = 12 coconuts to consume.

a. Dan consumes 6 coconuts and Patrick consumes 12 coconuts. In total, they consume 6+12 = 18 coconuts.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 5 minutes ago

asked 6 minutes ago

asked 6 minutes ago

asked 11 minutes ago

asked 11 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 15 minutes ago

asked 19 minutes ago