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QUESTION 1 Use for questions 1 -2: Selecting the appropriate level of aircraft skin forming machines: The A-1 Corporation supplies airplane manufactures with preformed aircraft skin panels that are used on the exterior of aircraft. Aircraft skin forming machines required to manufacture these panels can be leased on an as needed basis for $12,500 each. Given the complexity of working with exotic metals used in the manufacturing process, workers are price for one of A-1's panels is $70. Based on the production data in the following table, how many aircraft skin forming machines should A-1 lease to maximize profits? highly skilled and must be retained at all times. The market Aircraft Number of Value of skin Marginal Price of Incremen forming machines Panels Average Marginal Product Product Input tal Profit Workers Produced Product Price Product 0 6 0 650 2 6 1100 3 6 1400 1550 4 1680 6 6 1720 AFTER filing in the table, which of the following decision criteria should you use to determine the number of inputs (in this case the number of Aircraft skin-forming machines) that you should lease? a. Greatest value of marginal product b. Highest Incremental Profit C. Expansion of output as long as the value of marginal product is greater than the input price d Highest number of panels produced

QUESTION 1 Use for questions 1 -2: Selecting the appropriate level of aircraft skin forming machines: The A-1 Corporation supplies airplane manufactures with preformed aircraft skin panels that are used on the exterior of aircraft. Aircraft skin forming machines required to manufacture these panels can be leased on an as needed basis for $12,500 each. Given the complexity of working with exotic metals used in the manufacturing process, workers are price for one of A-1's panels is $70. Based on the production data in the following table, how many aircraft skin forming machines should A-1 lease to maximize profits? highly skilled and must be retained at all times. The market Aircraft Number of Value of skin Marginal Price of Incremen forming machines Panels Average Marginal Product Product Input tal Profit Workers Produced Product Price Product 0 6 0 650 2 6 1100 3 6 1400 1550 4 1680 6 6 1720 AFTER filing in the table, which of the following decision criteria should you use to determine the number of inputs (in this case the number of Aircraft skin-forming machines) that you should lease? a. Greatest value of marginal product b. Highest Incremental Profit C. Expansion of output as long as the value of marginal product is greater than the input price d Highest number of panels produced

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter16: Government Regulation
Section: Chapter Questions
Problem 8E
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QUESTION 1 Use for questions 1 -2: Selecting the appropriate level of aircraft skin forming machines: The A-1 Corporation supplies airplane manufactures with preformed aircraft skin panels that are used on the exterior of aircraft. Aircraft skin forming machines required to manufacture these panels can be leased on an as needed basis for $12,500 each. Given the complexity of working with exotic metals used in the manufacturing process, workers are price for one of A-1's panels is $70. Based on the production data in the following table, how many aircraft skin forming machines should A-1 lease to maximize profits? highly skilled and must be retained at all times. The market Aircraft Number of Value of skin Marginal Price of Incremen forming machines Panels Average Marginal Product Product Input tal Profit Workers Produced Product Price Product 0 6 0 650 2 6 1100 3 6 1400 1550 4 1680 6 6 1720 AFTER filing in the table, which of the following decision criteria should you use to determine the number of inputs (in this case the number of Aircraft skin-forming machines) that you should lease? a. Greatest value of marginal product b. Highest Incremental Profit C. Expansion of output as long as the value of marginal product is greater than the input price d Highest number of panels produced
Transcribed Image Text:QUESTION 1 Use for questions 1 -2: Selecting the appropriate level of aircraft skin forming machines: The A-1 Corporation supplies airplane manufactures with preformed aircraft skin panels that are used on the exterior of aircraft. Aircraft skin forming machines required to manufacture these panels can be leased on an as needed basis for $12,500 each. Given the complexity of working with exotic metals used in the manufacturing process, workers are price for one of A-1's panels is $70. Based on the production data in the following table, how many aircraft skin forming machines should A-1 lease to maximize profits? highly skilled and must be retained at all times. The market Aircraft Number of Value of skin Marginal Price of Incremen forming machines Panels Average Marginal Product Product Input tal Profit Workers Produced Product Price Product 0 6 0 650 2 6 1100 3 6 1400 1550 4 1680 6 6 1720 AFTER filing in the table, which of the following decision criteria should you use to determine the number of inputs (in this case the number of Aircraft skin-forming machines) that you should lease? a. Greatest value of marginal product b. Highest Incremental Profit C. Expansion of output as long as the value of marginal product is greater than the input price d Highest number of panels produced
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