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Crusoe can make 5 units of food per day if he devotes all his time to food production. He can make 10 units of clothing if he

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Answer #1

Crusoe's opportunity cost of making food = 10/5= 2

Friday's opportunity cost of making food = 15/10= 1.5

So Friday specializes in making food and Crusoe specializes in making clothing.

Crusoe should produce - 10 units of clothing and 0 unit of food.

Friday should produce - 0 units of clothing and 10 units of food.

Answer - 10 units of clothing and 10 units of food

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