Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
MBAA 523 Problem Set 4
1. Define the short-run and long-run and provide an aviation example.
2. In the short-run, Airbus manufactures aircraft at its existing factories; however, labor and other inputs such as those components purchased from suppliers (engines are one example) are variable. Airbus has received a substantial number of new orders and will increase its monthly aircraft production rate. Explain why the MPL will decrease above some level of labor as more workers are added. How does this decrease in MPL result in an increase in MC?
3. The table shows the marginal product of labor for a manufacturing firm in the short-run. The cost of an additional worker is $100 per day including benefits. The product sells for $2 per unit. Compute the value of the marginal product of labor. How many workers will the firm hire?
4. NEW DELHI — Each fall at harvest time, Leela Dhar Rajput used to hire 25 farm hands to work from dawn to dusk every day for a week bringing in the rice crop on his 20 acres of land in the central Indian state of Madhya Pradesh. This year, he plans to use a combine harvester instead. With the machine and the help of two or three men, he expects to finish the job in a single day. Indian agriculture is belatedly engaged in a mechanical revolution, boosting productivity in a sector that has long relied on cheap, surplus labor to tend crops in the world’s second most populous country. Job opportunities in factories and services, plus the government’s rural job-creation program guaranteeing 100 days of employment a year on public-works projects, have drained the pool of workers in villages. “I just can’t find enough people to do the hard work in the fields anymore,” says Mr. Rajput. [Mukherji, B. (2013, October 29). India’s Farmers Mechanize. WSJ, B8.]
Show and label the amount of capital (K) and labor (L) employed with the displayed isocost line and then insert a new isocost reflecting a substantial increase in the price of labor. Mr. Rajput intends to harvest the same quantity of rice as last year. Show and explain the effect on the K and L employed.
5. Complete the table (the easiest method is to do the computation in MS Excel). Create a line graph of AFC, AVC, ATC, and MC (in Excel, select the 4 columns, then Insert/Line, and choose the first graph option). Explain the reason for the shape of each curve. The completed table and graph can be copied and pasted into this document. Hint: Be certain that your line graph looks similar to those in Baye (your graph will not be as smooth as in Baye). If not, there is likely an error in your computations.
6. Define economies of scale. Is there evidence of economies of scale in the airline industry? (Hint: Consider Low-Cost-Carriers). In large commercial aircraft manufacturing?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more