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

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 300 0 I 250 0 150 75 I 125 625 o 150 | 0 1,250 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, V has the comparative advantage in the production of good Y. Similarly, V has the comparative advantage in the production of good X. (Hint: Be sure to express any fractions in decimal form.)

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