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 skinforming machines required too 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 highly skilled, but due to an overall recession in the economy a worker can be hired at a monthly rate of $8500. The market price for one of A-1's panels is $70. Based on the production data inthe following table, determine how may workers A-1 should hire to maximize profits. Answer the question below.AircraftIncremeM arginal Price of ntalProfitskinNumber ofValue offormingmachinesPanelsAverageProduct0MarginalProductProductWorkersProducedPriceProductInput16501100231400841550168017201. What is the decision rule that determines the number of workers to hire?2. How many workers do you hire?3. What is your rational?

(1)The aforementioned table can be written as follows:

Answered: Selecting the appropriate level of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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