Suppose that two different castaways, Mr. and Mrs. Howell, end up on a different island. Mr. Howell can pick 1 pineapple per hour, or 1 coconut. Mrs. Howell can pick 2 pineapples per hour, but it...



Suppose that two different castaways, Mr. and


Mrs. Howell, end up on a different island.


Mr. Howell can pick 1 pineapple per hour, or


1 coconut. Mrs. Howell can pick 2 pineapples per


hour, but it takes her two hours to pick a coconut.


a. Construct a table like Table 2 showing Mr. and


Mrs. Howell’s labor requirements.


b. Who—Mr. or Mrs. Howell—has a comparative


advantage in picking pineapples? In picking


coconuts? Which of the two should specialize in


which tasks?


c. [Harder] Assume that Mr. and Mrs. Howell had


originally washed ashore on different parts of


the island, and that they originally each spent


12 hours per day working, spending 6 hours


picking pineapples and 6 hours picking coconuts.


How will their total production change if they


find each other and begin to specialize?



May 26, 2022
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