Question

Steve and craig have been shipwrecked on a deserted island in the south pacific. their economic activity consists of either gathering pineapples or fishing. we know steve can catch four fish in one hour or harvest two baskets of pineapples. in the same time craig can reel in two fish or harvest two baskets of pineapples. assume craig and steve both operate on straight-line production possibilities curves. what is steve's opportunity cost of producing a basket of pineapples? of a producing a fish? what is craig's opportunity cost of producing a basket of pineapples? of a producing a fish?

Answer 1

The answer for this question is Steve's opportunity cost of a basket of pineapples is two fish while his opportunity cost of a fish is two basket of pineapples while Craig’s opportunity cost of a basket of pineapples is one fish; his opportunity cost of a fish is a basket of pineapples.