Question

write PPF equation for Robinson and Friday?

Answer 1

A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics.[1] It assumes an economy with one consumer, one producer and two goods. The title "Robinson Crusoe" is a reference to the 1719 novel of the same name authored by Daniel Defoe.

Robinson Crusoe is assumed to be shipwrecked on a deserted island.

The basic assumptions are as follows:

• The island is cut off from the rest of the world (and hence cannot trade)
• There is only a single economic agent (Crusoe himself)
• All commodities on the island have to be produced or found from existing stocks.

Crusoe's indifference curves depict his preferences for leisure and coconuts while the production function depicts the technological relationship between how much he works and how many coconuts he gathers. If the axes depicting coconut collection and leisure are reversed and plotted with Crusoe's indifference map and production function