menu
bartleby
search
close search
Hit Return to see all results

QUESTION 1Use for questions 1 -2: Selecting the appropriate level of aircraft skin forming machines: The A-1 Corporation supplies airplane manufactures with preformed aircraftskin 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 $12,500each. Given the complexity of working with exotic metals used in the manufacturing process, workers areprice 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 marketAircraftNumber ofValue ofskinMarginal Price of IncremenformingmachinesPanelsAverageMarginalProductProductInput tal ProfitWorkersProducedProductPriceProduct060650261100361400155041680661720AFTER 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 youshould lease?a. Greatest value of marginal productb.Highest Incremental ProfitC.Expansion of output as long as the value of marginal product is greater than the input pricedHighest number of panels produced

Question
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
help_outline

Image Transcriptionclose

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

fullscreen
check_circleAnswer
Step 1

With the following information the table can be completed:

Average Product= Number of Panels Produced/ Aircraft skin forming machines (As workers are constant)

Marginal Product = (Number of Panels Produced) n – (Number of Panels Produced) n-1

Product Price (given) = $70

Value of Marginal Product= Marginal Product * Product Price

Price of input (given) = $12500 (for each unit)

Incremental Profit = Value of Marginal Product - Price of input

Workers NumberAverage Margin ProduValue of Price of Incremental
Aircraft
of Panels Product
Marginal Input (S) Profit (S)
skin
al
ct
Product Price
Produced
forming
Product
(S)
($)
machines
0
6
0
70
0
650
45500
1
6
650
650
70
12500
33000
1100
2
6
550
450
70
31500
12500
19000
1400
300
3
6
466.67
70
21000
12500
8500
387.5
4
6
1550
150
70
10500
12500
-2000
5
6
1680
336
130
70
9100
12500
-3400
9700
6
1720
286.67
40
70
2800
12500
help_outline

Image Transcriptionclose

Workers NumberAverage Margin ProduValue of Price of Incremental Aircraft of Panels Product Marginal Input (S) Profit (S) skin al ct Product Price Produced forming Product (S) ($) machines 0 6 0 70 0 650 45500 1 6 650 650 70 12500 33000 1100 2 6 550 450 70 31500 12500 19000 1400 300 3 6 466.67 70 21000 12500 8500 387.5 4 6 1550 150 70 10500 12500 -2000 5 6 1680 336 130 70 9100 12500 -3400 9700 6 1720 286.67 40 70 2800 12500

fullscreen
Step 2

The criteria that determines the number of inputs (i.e. Aircraft skin forming machines) that should be leased is (c) Expansion of output as long as the Value of Marginal Product is greater than the Price of Input. The reason be...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 3. Consider the following diagram: ATC MC ive AVC P-D-MR Quartity Would a perfectly competitive firm...

A: 3.In the perfect competitive market, the firm will produce the level of output at where the price eq...

question_answer

Q: true or false

A: If a market have the power to fix its price greater than the marginal cost, the firm is said to have...

question_answer

Q: People in the U.S. state of Iowa eat both corn and potatoes. It is technically possible for farmers ...

A: Trading is an initial economic concept that involves buying and selling of services and goods in ter...

question_answer

Q: Suppose Xavier has tickets to the Super Bowl, but is terribly ill with a noncontagious infection. Ho...

A: According to the traditional model of risk behavior, the normal person likes to take risks. The tick...

question_answer

Q: Quantitative easing occurs when the A) Fed sells long-term securities. B) Fed buys long-term securit...

A: The correct option is B.

question_answer

Q: Кееp production $200 million $300 million Using what you know about the prisoner's dilemma, what wou...

A: The aforemention game belongs to the prisioner’s dilemma where each player (Antel and IMD) both show...

question_answer

Q: In​ Korea, real GDP per hour of labor is​ $22, the real wage rate is​ $15 per​ hour, and people work...

A: Korean marketThe given information:Real GDP per hour of labor is $22The real wage rate is $15 per ho...

question_answer

Q: After a careful statistical analysis, the Chidester Company concludes the demand function for its pr...

A: The formula of Price Elasticity of demand 

question_answer

Q: A generalization of the fisher effect that can be applied to other variables is the relationship bet...

A: It is given that,According to the fisher’s effect, the real price growth is equal to the difference ...

Sorry about that. What wasn’t helpful?