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, you may infer that the law of increasing opportunity costs applies to increasing production of
A. B-1 bombers.
B. Stealth bombers but not to B-1 bombers.
C. Both B-1 bombers and Stealth Bombers.
D. Neither B-1 bombers or Stealth Bombers.
Answer: C
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