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Consider two nations A and B and tow goods X and Y. The production possibility frontier and utility function of each nation is given by
Consider two nations A and B and tow goods X and Y. The production possibility frontier and utility function of each nation is given by the equations: Nation A ? = 225 ? ^2 40 ?? = (??) 1/2 Nation B ? = 121 ? ^2 186 ? ? = (??) 1 /2Does nation A's economy exhibit constant opportunity cost in production? How about nation B? Support your answer using numeric/quantitative example (5 points)
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