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. Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAThe highest opportunity cost in Table 1.2 for B-1 bombers in terms of Stealth bombers is
A. 33 B-1 bombers
B. 10 B-1 bombers
C. 10 Stealth bomber per B-1
D. 10 Stealth bombers per B-1
Answer: D
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What is the Nash equilibrium of this game?
a. Both the vendors price high b. Both the vendors price low c. Vendor A prices high, vendor B prices low d. Vendor B prices high, vendor A prices low
On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then
a. an apple costs twice as much as a light bulb. b. the opportunity cost of a light bulb is 2 apples. c. the opportunity cost of an apple is one-half of a light bulb. d. All of the above are correct.
The economy of Carl’s country is growing at a rate of 1.75 percent per year. The economy of Miska’s country is growing at a rate of 3 percent per year. Approximately how much longer than Miska’s country will it take for the economy of Carl’s country to double?
a. 1.25 years b. 16.7 years c. 56 years d. 40 years
Answer the following statement(s) true (T) or false (F)
1. As long as labor is not a regressive factor, a higher wage will cause a firm to produce less output in the long run. 2. When labor is a regressive factor, a higher wage rate leads to a reduction in the firm's long-run total costs. 3. If labor is a regressive factor, then a firm's long-run demand for labor may or may not be downward sloping. 4. or a regressive factor the scale effect must be greater than the substitution effect. 5. A competitive firm's demand for labor always slopes down in the short-run but may slope upwards or downwards in the long-run.