Table 12 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 92

Multiple Choice

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. $\begin{array}{|c|c|c|c|c|}\hline \text { Combination }&\text { Number of } & \begin{array}{c}\text { Opportunity Cost of } \\\text { Stealth Bombers in }\end{array} & \text { Number of } & \text { Opportunity Cost of B- } \\&\text { Stealth } & \text { Terms of B-1 } & \text { B-1 } & 1 \text { Bombers in Terms of } \\&\text { Bombers } & \text { Bombers } & \text { Bombers } & \text { Stealth Bombers } \\\hline \mathrm{A} & 195 & & 20 \\\hline \mathrm{B} & 180 & & 35 \\\hline \mathrm{C} & 150 & & 45 \\\hline \mathrm{D} & 100 & & 50 \\\hline\end{array}$

Table 1.2
Production Possibilities for Bombers On the basis of your calculations in Table 1.2,what is gained by producing at point B rather than point C?

• A)45 B-1 bombers.
• B)30 Stealth bombers.
• C)180 Stealth bombers.
• D)10 B-1 bombers.

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