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

Question 4

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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. Table 1.2
Production Possibilities for Bombers
 Combination  Number of B- 1 Bombers  Opportunity  cost(Foregone  Stealth)   Number of  Stealth Bombers  Opportunity cost  (Foregone B-1)   A 20 NA 195 B 35180 C 45150 D 50100 NA \begin{array} { | l | c | c | c | c | } \hline \text { Combination } & \begin{array} { c } \text { Number of B- } \\1 \text { Bombers }\end{array} & \begin{array} { c } \text { Opportunity } \\\text { cost(Foregone } \\\text { Stealth) }\end{array} & \begin{array} { c } \text { Number of } \\\text { Stealth Bombers }\end{array} & \begin{array} { c } \text { Opportunity cost } \\\text { (Foregone B-1) }\end{array} \\\hline \text { A } & 20 & \text { NA } & 195 & \\\hline \text { B } & 35 & & 180 & \\\hline \text { C } & 45 & & 150 & \\\hline \text { D } & 50 & & 100 & \text { NA } \\\hline\end{array} 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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