Step 1: View the table. Carefully read the following table showing the production data for cars and bicycles: Possibility Cars (hundreds) 15A, 11B, 8C, 5D, & 0E. Bicycles (hundreds) 0A, 5B, 7C, D9, & 11E.
Step 2: Use the table to answer questions. Using the table provided in Step 1, answer the following questions in a one-page (250-word) document: Determine the opportunity cost of additional production at different outputs. Determine which particular combination(s) is most efficient. What are the components of an efficient allocation? How would advancements in assembly line technology for automobile production affect the production of cars and bicycles? Suppose the government imposes a new, expensive tax on gasoline. How might this affect the production of cars and bicycles?