Table 1.1 - Production possibilities and opportunity costs of missiles and houses
Table 1.1 shows the tradeoff between different combinations of missile production and home construction,ceteris paribus.Complete the table by calculating the required opportunity costs for both missiles and houses.Then answer the indicated question(s).
-In Table 1.1,the opportunity cost of increasing the production of houses from 17,000 to 21,000 in terms of missiles per house is:

Question

Table 1.1 - Production possibilities and opportunity costs of missiles and houses
Table 1.1 shows the tradeoff between different combinations of missile production and home construction,ceteris paribus.Complete the table by calculating the required opportunity costs for both missiles and houses.Then answer the indicated question(s). 
-In Table 1.1,the opportunity cost of increasing the production of houses from 17,000 to 21,000 in terms of missiles per house is:

Quizplus · Accepted Answer

The opportunity cost is calculated by the change in the number of missiles divided by the change in the number of houses. If the production of houses increases from 17,000 to 21,000, the opportunity cost per house is the total decrease in missiles divided by 4,000 houses.

Table 11 - Production Possibilities and Opportunity Costs of Missiles and and Houses