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.
-The lowest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is
A)0 Stealth bombers per B-1 bomber.
B)2 Stealth bombers per B-1 bomber.
C)1 Stealth bomber per B-1 bomber.
D)0.5 Stealth bomber per B-1 bomber.

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. 
-The lowest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is
A)0 Stealth bombers per B-1 bomber. 
B)2 Stealth bombers per B-1 bomber. 
C)1 Stealth bomber per B-1 bomber. 
D)0.5 Stealth bomber per B-1 bomber.

Quizplus · Accepted Answer

The best choice is to produce 400 B-1 bombers and 200 Stealth bombers because it has the lowest opportunity cost of 0.5 Stealth bombers per B-1 bomber, which means for every 1 B-1 bomber produced, only half of a Stealth bomber is given up. This is a better trade-off than any other combination of production in the table.

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