MBAA 523Problem Set 41. Define the short-run and long-run and provide an aviation example.2. In the short-run, Airbus ma...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

MBAA 523 - Define the short-run and long-run

April 14, 2018

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?
Labor
(L)
0
1
2
3
4
5
6
7
8
9
10
11

MPL

VMPL

74
168
238
284
306
304
278
228
154
56
-66

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

Page 1 of 2

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.

K

L
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.
Q
0
100
200
300
400
500
600

FC
$10,000

VC

TC

AFC

AVC

ATC

MC

$200
125
133.34
150
200
250

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?










OUR SERVICE CHARTER






  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • Better Grades Guarantee

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • 24/7 Customer Support

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.




Related Questions