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.)