Table 12 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 56

Multiple Choice

Table 1.2 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.
$\begin{array}{|c|c|c|c|c|}\hline & \begin{array}{c}\text { Number of } \\\text { Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity Cost of } \\\text { Stealth Bombers in } \\\text { Terms of B-1 } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Number of } \\\text { B-1 } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity Cost of B- } \\\text { 1 Bombers in Terms of } \\\text { Stealth Bombers }\end{array} \\\hline \text { A } & 195 & & 20 & \\\hline \text { B } & 180 & & 35 & \\\hline \text { C } & 150 & & 45 & \\\hline \text { D } & 100 & & 50 & \\\hline\end{array}$
Table 1.2
Production Possibilities for Bombers Refer to Table 1.2.In the production range of 20 to 35 B-1 bombers, the opportunity cost of producing 1 more B-1 bomber is

• A) 195/20 of Stealth bombers.
• B) 35/20 of Stealth bombers.
• C) 15 Stealth bombers.
• D) 1 Stealth bomber.

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Definitions:

Increase

An upward movement in quantity, size, number, value, or intensity of a particular variable.

Market Demand

The total quantity of a product or service that all consumers in a market are willing and able to buy at various prices, given a period of time.

Related Goods

Products or services that are either complements or substitutes to one another, affecting each other's demand and supply.

Cost of Resources

The total expense incurred to acquire resources needed for production, including raw materials, labor, and capital.