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The economics of Robinson Crusoe Economy consists of a single producer-consumer,like Robinson Crusoe on a desert island. Assume Crusoe divides his time between leisure working catching fish(production) .making fishing nets (investment) Assume Crusoe optimizes given the constraints he faces • The economics of Robinson Crusoe • Economy consists of a single producer-consumer, like Robinson Crusoe on a desert island. • Assume Crusoe divides his time between – leisure – working • catching fish (production) • making fishing nets (investment) • Assume Crusoe optimizes given the constraints he faces
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