You Are the Minister of Trade for a Small Island

Multiple Choice

You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above. You have arrived with 300 coconuts to trade. The minimum number of fish you would be willing to accept in exchange for those coconuts:

A) is 1,500 fish, because that's how many you can catch without trade.
B) is 1,200 fish, because that is just enough to offset the opportunity cost of harvesting the coconuts.
C) is 301 fish, because anything better than a one-for-one trade benefits your island.
D) is 901 fish, because that is just a little more than the opportunity cost of harvesting the coconuts.