Alexander Selkirk lives on Juan Fernandez Island.He spends his days gathering coconuts and spiny lobsters.If he spends all day gathering coconuts,he can collect 40 coconuts.If he spends all day collecting spiny lobsters,he can capture 20 in a day.His production possibilities curve is shown in the figure below.

As Selkirk collects more coconuts,the opportunity cost of a coconut is ________.

Question

Alexander Selkirk lives on Juan Fernandez Island.He spends his days gathering coconuts and spiny lobsters.If he spends all day gathering coconuts,he can collect 40 coconuts.If he spends all day collecting spiny lobsters,he can capture 20 in a day.His production possibilities curve is shown in the figure below.

As Selkirk collects more coconuts,the opportunity cost of a coconut is ________.

Quizplus · Accepted Answer

As Selkirk collects more coconuts, the opportunity cost of a coconut increases. This means that he has to give up more and more spiny lobsters if he wants to collect more coconuts. The best choice would be a combination of coconuts and lobsters that maximizes his utility or satisfaction, given his production possibilities. The specific combination would depend on his preferences and needs.

Alexander Selkirk Lives on Juan Fernandez Island