Question
8. Working with Numbers and Graphs Q8 The following table summarizes the combinations of goods X and Y that two individuals, Nicki and Kamal, can
8. Working with Numbers and Graphs Q8
The following table summarizes the combinations of goods X and Y that two individuals, Nicki and Kamal, can each produce individually.
Nicki Kamal
X Y X Y
150 0 100 0
75 15 50 250
0 30 0 500
Nicki's opportunity cost of producing each unit of good Y, in terms of good X, is ___________ units of X. On the other hand, Kamal's opportunity cost of producing each unit of good Y, in terms of good X, is ____________ units of X. Therefore, Nicki/Kamal has the comparative advantage in the production of good Y. Similarly,Nicki/Kamal has the comparative advantage in the production of good X. (Hint: Be sure to express any fractions in decimal form.)
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