Person economy could this also be his budget line

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Reference no: EM1315406

Q. Robinson Crusoe can either fish (F) at a rate of 1 caught per 2 hours or pick Coconuts (C) at a rate of 1 picked per hour. He has 12 hours per day available for either activity. Elucidate his production potential. In one person economy could this also be his budget line?

The table below Elucidates utility which Crusoe gets from consuming fish also coconuts.

Quantity of Fish Total Utility Quantity of Coconuts Total Utility
0 0 0 0
1 40 1 24
2 70 2 44
3 90 3 60
4 102 4 72
5 110 5 80
6 116 6 84
7 120 7 86
8 122 8 87
9 123 9 87
10 123 10 87
11 123 11 87
12 123 12 87

Do the best combinations which Crusoe selects for utility meet the consumer equilibrium condition (MU/P is equal for all goods)? Note which this will only be approximate in this problem since we are dealing with finite combinations.

Reference no: EM1315406

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