Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. On the basis of your calculations in Table 1.1
-what is the opportunity cost of producing at point S rather than point T?
A)1 Stealth bomber.
B)1 B-1 bomber.
C)10 Stealth bombers.
D)0.9 Stealth bombers.

Question

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.  On the basis of your calculations in Table 1.1
-what is the opportunity cost of producing at point S rather than point T?
A)1 Stealth bomber. 
B)1 B-1 bomber. 
C)10 Stealth bombers. 
D)0.9 Stealth bombers.

Quizplus · Accepted Answer

The opportunity cost of producing at point S rather than point T is the amount of B-1 bombers that must be given up to produce more Stealth bombers.

Table 11 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth