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 4NAThe lowest opportunity cost e in Table 1.1 for B-1 bombers in terms of Stealth bombers is

A. 2 Stealth bombers per B-1 bomber.
B. 0 Stealth bombers per B-1 bomber.
C. 0.5 Stealth bomber per B-1 bomber.
D. 1 Stealth bomber per B-1 bomber.


Answer: D

Economics

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