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. $\begin{array}{|c|c|c|c|c|}
\hline \text { Combination }&\text { Number of } & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Stealth Bombers in }
\end{array} & \text { Number of } & \text { Opportunity Cost of B- } \
&\text { Stealth } & \text { Terms of B-1 } & \text { B-1 } & 1 \text { Bombers in Terms of } \
&\text { Bombers } & \text { Bombers } & \text { Bombers } & \text { Stealth Bombers } \\hline \mathrm{A} & 195 & & 20 \
\hline \mathrm{B} & 180 & & 35 \
\hline \mathrm{C} & 150 & & 45 \
\hline \mathrm{D} & 100 & & 50 \
\hline
\end{array}$

Table 1.2
Production Possibilities for 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. $\begin{array}{|c|c|c|c|c|}
\hline \text { Combination }&\text { Number of } & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Stealth Bombers in }
\end{array} & \text { Number of } & \text { Opportunity Cost of B- } \
&\text { Stealth } & \text { Terms of B-1 } & \text { B-1 } & 1 \text { Bombers in Terms of } \
&\text { Bombers } & \text { Bombers } & \text { Bombers } & \text { Stealth Bombers } \\hline \mathrm{A} & 195 & & 20 \
\hline \mathrm{B} & 180 & & 35 \
\hline \mathrm{C} & 150 & & 45 \
\hline \mathrm{D} & 100 & & 50 \
\hline
\end{array}$

Table 1.2
Production Possibilities for 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 of this good also increases. In the table, as the production of Stealth bombers decreases from A to D, the number of B-1 bombers increases, and the opportunity cost in terms of B-1 bombers increases. Similarly, as the production of B-1 bombers increases, the opportunity cost in terms of Stealth bombers also increases. Thus, the law applies to both bombers.

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