When Thurston catches 10 fish a day, he can gather a maximum of 40 coconuts, and when he catches 20 fish a day, he can gather a maximum of 30 coconuts. If Thurston's opportunity cost of producing each good increases as he produces more of it, and he decides to catch 30 fish a day, then the maximum number of coconuts he can gather must be:
A)equal to 20.
B)greater than 20.
C)greater than 10.
D)less than 20.

Question

Quizplus · Accepted Answer

If the opportunity cost of going from 10 to 20 fish per day is 10 coconuts, then the opportunity cost of going from 20 to 30 fish per day must be more than 10 coconuts. Thus, since Thurston was able to gather 30 coconuts when he caught 20 fish that means he will be able to gather fewer than 20 coconuts when he catches 30 fish.

When Thurston Catches 10 Fish a Day, He Can Gather