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. On the basis of your calculations in Table 1.2
-The law of increasing opportunity costs applies to
A)Both B-1 and Stealth bombers.
B)B-1 bombers but not to Stealth bombers.
C)Stealth bombers but not to B-1 bombers.
D)Neither bomber.

Question

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.  On the basis of your calculations in Table 1.2
-The law of increasing opportunity costs applies to
A)Both B-1 and Stealth bombers. 
B)B-1 bombers but not to Stealth bombers. 
C)Stealth bombers but not to B-1 bombers. 
D)Neither bomber.

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as production of one good increases, the opportunity cost of producing an additional unit rises. This applies to both B-1 and Stealth bombers as resources are reallocated from one to the other.

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