The manufacturer of commercial jets has a cost index equal to 94.9 per aircraft in 2013. The anticipated cost index for the airplane in 2018 is 116.6. The average compound rate of growth should hold steady for the next 15 years. If an aircraft costs $20.1 million to build in 2014, what is its expected cost in 2016? State your assumptions.

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?

All of the following are examples of oligopolistic markets except

a. college bookstores

b the broadcast industry

c aircraft manufacture

d. seafood restaurant chains

Recently, the Boeing Commercial Airline Group ( BCAG) recorded orders for more than 15,000 Jetliners and delivered more than 13,000 airplanes. To maintain its output volume, this Boeing division Combines efforts of capital and more than 90,000 workers. Suppose the European company, Airbus, enjoys a similar production technology and produces a similar number of aircraft, but that labor costs (including fringe benefits) are higher in Europe than in the United States. Would you expect workers at
Airbus to have the same marginal product as workers at Boeing? Explain carefully.