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

question 139

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

$\text {Table \(1.2\) }$
$\text {Production Possibilities for Bombers}$
On the basis of your calculations in Table 1.2, what is gained by producing at point B rather than point A?

• A)35 B
• B)195 Stealth bombers.
• C)15 B
• D)15 Stealth bombers.