Production Possibility Curve Theory

Think of Robinson Crusoe alone on his island. He consumes only two goods, bread and cheese.
Both goods are produced with land exclusively. Outputs of the two goods depend on the
allocation of land between them. Robinson Crusoe’s input of labour is fixed; he cannot increase
output by working harder. Specifically, the island contains five distinct plots of land - called A,
B, C, D, and E - with different fertilities depending on which crop is produced. Plots may be
devoted entirely to bread, entirely to cheese or partly to both in whatever proportion Robinson
Crusoe thinks best....

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