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 The highest opportunity cost anywhere in Table 1.1 for B-1 bombers in terms of Stealth bombers is
A) 1 Stealth bomber per B
B) 3 Stealth bombers per B
C) 2 Stealth bombers per B
D) 0.5 Stealth bomber per B

Question

Quizplus · Accepted Answer

The highest opportunity cost for B-1 bombers in terms of Stealth bombers occurs when moving from combination U (7 Stealth, 2 B-1s) to V (4 Stealth, 3 B-1s), where producing one more B-1 bomber costs 3 Stealth bombers (7-4=3).

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