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

question 4

Multiple Choice

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, you may infer that the law of increasing opportunity costs applies to

• A) Stealth bombers but not to B-1 bombers.
• B) B-1 bombers but not to Stealth bombers.
• C) Both B-1 bombers and Stealth bombers.
• D) Neither B-1 bombers nor Stealth bombers.