Question

Airlines seek new ways to save on fuel as costs soar

  

   

Fuel is an​ airline's biggest single expense. In​ 2008, the cost of jet fuel rocketed. Airlines tried to switch to newer generation​ aircraft, which have more​ fuel-efficient engines.

  

    ​Source: The New York Times​, June​ 11, 2008

Draw a graph to illustrate the effects of more​ fuel-efficient aircraft on an​ airline's MP and AP curves.

The graph shows an​ airline's AP and MP curves.

  

   

Show the effect of the more fuel efficient aircraft.

  

   

Draw and label a new AP curve.

  

   

Draw and label a new MP curve.   

​>>> Make sure your MP curve shows initial increasing returns followed by decreasing returns.

  

   

Draw a point at the maximum average product.

Average/marginal product (miles per worker) 140 MP AP 4 0 50 100 150 200250 300 Labor (thousands of workers)

Answer 1

the ainlines to bott Cost the MP AP al and Labor the.. airline 才 thousonds Werke ) bacause Manginal and Cost are negatinaly telated to Cost nel