Chapter 11, Problem 7BIC

Let’s assume the U.S. faces trade-offs between military missiles (MM for Ukraine) and Bridge Repairs (BR in the U.S.). In other words, we are assuming the U.S. can use its scarce, productive resources (land, labor, capital, and entrepreneurship) for the production of military missiles for Ukraine (transfer of resources to Ukraine) or for the repair of bridges in the U.S. (Infrastructure).  We are assuming the amount of resources is given, technology is given, and the U.S. is producing using all of its resources which means there are no unemployed resources.          MU      BR            Trade-Off: To produce an additional missile                                                            for Ukraine, the opportunity cost is the value                                                           of bridge repairs foregone                                                                                                                MUs  :  BRs             0 MUs             140 BRs…