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

question 43

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. Table 1.1
Production Possibilities for Bombers
$$\begin{array} { | l | c | c | r | r | } \hline \text { Combination } & \begin{array} { c } \text { Number of B- } \\1 \text { Bombers }\end{array} & \begin{array} { c } \text { Opportunity cost } \\\text { (Foregone } \\\text { Stealth) }\end{array} & \begin{array} { c } \text { Number of } \\\text { Stealth Bombers }\end{array} & \begin{array} { c } \text { Opportunity cost } \\\text { (Foregone B-1) }\end{array} \\\hline \mathrm { S} & 0 & \text { NA } & 10 & \\\hline \mathrm { T } & 1 & & 9 & \\\hline \mathrm { U } & 2 & & 7 & \\\hline \mathrm { V } & 3 & & 4 & \text { NA } \\\hline\end{array}$$ On the basis of Table 1.1,what is the opportunity cost of producing at point S rather than point T?

• A)1 Stealth bomber.
• B)1 B-1 bomber.
• C)10 Stealth bombers.
• D)0.9 Stealth bombers.

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