7. (LO 5) The data below show the total production (in millions) of the only two goods produced in Kitchener and Waterloo, two small planets in deep space:

Kitchener: 16 kiwis or 12 trucks; Waterloo: 8 kiwis or 14 trucks

a) What is the opportunity cost of a kiwi in Kitchener?

b) What is the opportunity cost of a kiwi in Waterloo?

c) What is the opportunity cost of a truck in Kitchener?

d) What is the opportunity cost of a truck in Waterloo?

e) If, before trade, each planet was devoting half its resources to producing each product, what is the total amount produced by both?

f) If the two planets were to specialize in producing the product they do best, what would be the total amount they could produce?

g) What are the total gains as a result of specialization?