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.
Correct Answer:
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