Question: (See Problem 2. ) Robinson Crusoe has exactly 14 hours per day to spend gathering coconuts of catching fish. He can catch 5 fish per

(See Problem 2. ) Robinson Crusoe has exactly 14 hours per day to spend gathering coconuts of catching fish. He can catch 5 fish per hour or he can pick 20 coconuts per hour. His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will b the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is a. $280 and the price of fish is $4. b. $70 and the price of fish is $5. $350 and the price of fish is $5. d. $280 and the price of fish is $.20. e. $175 and the price of fish is $.20. ANS: A

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