Introductory Microeconomics – ECON 1110
Homework Assignment #1 Suggested Solutions
1.
a)
(5 points for each PPF, totally 10 points)
Toby's PPF
0
5
10
15
20
25
0
1
2
3
4
5
6
7
8
9
10
fish
apple
Candice's PPF
0
0.5
1
1.5
2
2.5
0
1
2
3
4
5
6
7
8
9
10
fish
apple
b) (2.5 points each, totally 5 points. 1 point each if there is no ‘fish/apple’ behind the
number )Toby’s opportunity cost of producing 1fish is 2 apples, and his opportunity cost of
producing 1 apple is ½ fish.
c) (2.5 points each, totally 5 points. 1 point each if there is no ‘fish/apple’ behind the
number ) Candice’s opportunity cost of producing 1 fish is ½ apples, and her opportunity
cost of producing 1 apple is 2 fish.
d) (2.5 points for each, totally 5 points) Toby has absolute advantage in fish, since he can
catch 10 fish per day, and Candice can only catch 4 fish per day.
He also has absolute

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