Table 1.1 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. Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost (Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAOn the basis of Table 1.1, what is the opportunity cost of producing at point S rather than point T?
A. 0.9 Stealth bombers.
B. 1 Stealth bomber.
C. 1 B-1 bomber.
D. 10 Stealth bombers.
Answer: C
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