Business, 11.10.2019 23:30 jebjeb6135

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suppose that katniss and peeta have been exiled on a deserted island. to feed themselves, they need to catch fish and hunt rabbits. the table below shows the production potential of katniss and peeta. if katniss spends all her time fishing, she can catch 40 fish. if she spends all her time hunting rabbits, she can catch 20 rabbits. peeta can spend all his time on fish and catch 8 fish or all his time on rabbits and catch 16 rabbits. both katnis and peeta face a constant trade-off between catching fish and hunting rabbits.

weekly catch
fish rabbits
katniss 40 20
peeta 8 16

a. katniss's opportunity cost for catching 1 rabbit is fish.

b. peeta's opportunity cost for catching 1 rabbit is .

c. suppose katniss and peeta specialize and trade. for trade to be mutually beneficial, the price of a rabbit should be more than but less than fish.

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suppose that katniss and peeta have been exiled...

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