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.
$\begin{array}{|c|c|c|c|c|}
\hline & \begin{array}{c}
\text { Number of } \
\text { Stealth } \
\text { Bombers }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Stealth Bombers in } \
\text { Terms of B-1 } \
\text { Bombers }
\end{array} & \begin{array}{c}
\text { Number of } \
\text { B-1 } \
\text { Bombers }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of B- } \
\text { 1 Bombers in Terms of } \
\text { Stealth Bombers }
\end{array} \
\hline \text { A } & 195 & & 20 & \
\hline \text { B } & 180 & & 35 & \
\hline \text { C } & 150 & & 45 & \
\hline \text { D } & 100 & & 50 & \
\hline
\end{array}$
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
B) 30 Stealth bombers.
C) 180 Stealth bombers.
D) 10 B

Question

Quizplus · Accepted Answer

Moving from point C to point B results in the production of 30 additional Stealth bombers (180 - 150), with a reduction in B-1 bombers produced.

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