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. 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-1 bombers.
B)195 Stealth bombers.
C)15 B-1 bombers.
D)15 Stealth bombers.

Question

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.  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-1 bombers. 
B)195 Stealth bombers. 
C)15 B-1 bombers. 
D)15 Stealth bombers.

Quizplus · Accepted Answer

Producing at point B rather than point A gains an additional 15 B-1 bombers without sacrificing any Stealth bombers. Moving from point A to point B involves only an opportunity cost of 30 Stealth bombers. Point B represents the best choice because it maximizes the production of both types of bombers without giving up too much of either.

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