Economics Production Functions Quiz

Production Functions

• Robinson's coconut production function is $C_{Robinson} = \frac{1}{4} \sqrt{L_C}$
• Friday's coconut production function is $C_{Friday} = \frac{1}{2} \sqrt{L_C}$

Comparative Advantage

• Friday has a comparative advantage in coconut production compared to Robinson. This is because for the same amount of labor, Friday produces more coconuts than Robinson.

Opportunity Cost

• Robinson can produce coconuts at a lower opportunity cost compared to Friday. This means that Robinson gives up less fish (or other goods) to produce an additional coconut compared to Friday.

Labor Input and Output

• If Robinson and Friday use the same positive number of labor hours to harvest coconuts, Friday will always be able to harvest more coconuts than Robinson.

Test your understanding of coconut production functions with a focus on Robinson and Friday's comparative advantages. Explore concepts such as opportunity cost and labor input/output relationships in coconut farming. Evaluate who produces more coconuts and under what conditions.