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

question 58

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, what is the opportunity cost of producing at point V rather than point U?

• A) 3 B-1 bombers.
• B) 1 B-1 bomber.
• C) 4 Stealth bombers.
• D) 3 Stealth bombers.

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