Reference no: EM13149478

100 people (50 men and 50 women) live on a small island. Twenty men work in a mine where they produce steel. The mine sells the annual steel production to the local shovel manufacturer for $2500. The proceeds from the sale are equally divided among the miners and paid out as wages. The shovel manufacturer, a local woman, employs 10 women to produce 20 steel shovels every year. These shovels are sold to male farmers for $250 apiece. The shovel manufacturer keeps $500 as profit for herself and pays her workers' wages from the remaining revenue. The farmers use their shovels to produce coconuts, which are the staple food on the island. Each farmer produces 400 coconuts per year, which sell at $1 apiece. The remaining ten men are also farmers but they produce coconuts without shovels. Each such farmer can produce 50 coconuts per year.