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 lowest opportunity cost of houses in terms of missiles 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 lowest opportunity cost of houses in terms of missiles is:

Quizplus · Accepted Answer

The opportunity cost of an item is determined by what is given up to produce that item. The lowest opportunity cost of houses in terms of missiles would be the smallest amount of missiles that need to be given up to produce one house. Therefore, 0.00010 of a missile per house represents the lowest opportunity cost among the given options.

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