The table shows Robinson Crusoes production possibilities If

The table shows Robinson Crusoe\'s production possibilities. If Crusoe increases production of berries from 84.0 pounds to 104.0 pounds and his production is efficient, his opportunity cost of a pound of berries is pounds of fish. Crusoe\'s opportunity cost of an extra pound of berries as he produces more berries.

Solution

First, We should under stand what is opportunity cost? How can it calculated?

It is defined as what you sacrifice by making one choice rather than another.this concept compares what is lost with what is gained, It is based on your decision.

opportunity cost=What is sacrificed / what is gained

In this table= If he increase production of barries from 84 to 104 , he will loss 60 to 52 fishes.

So the difference between twon products is ( 104-84=20) & ( 60-52=8)

The opportunity cost is = 8/20= 0.4

His opportunity cost for one extra pound of barries is 0.5 so he will produces more unit of barries.