MGEA02H3 Lecture Notes - Castaway, Daniel Defoe
4 Feb 2013
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A simple example to show why the ppf bows out (why the attainable set is convex) Suppose that robinson needs food and can obtain it in two ways: by catching fish or by collecting coconuts. Robinson has 5 hours available each day to find food (he needs the rest of the time to build shelter, generate clothing, etc. ). The following table tells you the number of fish that. Robinson collects in total for the various number of hours that he spends fishing each day (nf = hours per day spent fishing, f = fish per day caught): We want to graph the ppf for fish and coconuts. To do this, we must work out the number of fish (f) and the number of coconuts (c) that robinson obtains depending on how he allocates his 5 hours each day. This we do in the following table and then draw the graph below.
