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.
$\begin{array}{|c|c|c|c|c|}
\hline \text { Combination } & \begin{array}{c}
\text { Number } \
\text { of Stealth } \
\text { Bombers }
\end{array} & \begin{array}{c}
\text { Opportunity cost } \
\text { of Stealth } \
\text { Bombers in } \
\text { Terms of B-1s }
\end{array} & \begin{array}{c}
\text { Number } \
\text { of B-1s }
\end{array} & \begin{array}{c}
\text { Opportunity } \
\text { Terms of B-1s in } \
\text { Bombers }
\end{array} \
\hline \mathrm{S} & 10 & & 0 & \
\hline \mathrm{T} & 9 & & 1 & \
\hline \mathrm{U} & 7 & & 2 & \
\hline \mathrm{V} & 4 & & 3 & \
\hline
\end{array}$
Table 1.1
Production Possibilities for Bombers On the basis of your calculations in Table 1.1, you may infer that the law of increasing opportunity costs applies to
A) Stealth bombers but not to B
B) B
C) Both B
D) Neither B

Question

Quizplus · Accepted Answer

The opportunity cost of producing each additional Stealth bomber increases as more are produced, and similarly, the opportunity cost of producing each additional B-1 bomber increases as more are produced, indicating the law of increasing opportunity costs applies to both.

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