In 2007, the European airplane manufacturer Airbus began selling its "super jumbo" jet, the A380

In 2007, the European airplane manufacturer Airbus began selling its "super jumbo" jet, the A380. By 2019, smaller jets using carbon fiber parts and more efficient engines were also on the market. According to an article in the Wall Street Journal, "Airlines, it turns out, preferred [the smaller jets) to the A380 and Boeing's own humpbacked giant, the 747. The smaller jets were easier to fill and could fly direct to more places around the world without funneling through hubs." Source: Robert Wall, "Airports Worried the A380 Was Too Big. Turns Out, That Wasn't the Problem," Wall Street Journal, February 14, 2019. a. What does the observation that the smaller jets were easier to fill with passengers imply about the average cost of flying a passenger in a smaller jet and in an A380? The implication is that the average cost of flying a passenger on a smaller jet is lower than the cost of flying a passenger on a larger jet. b. Does your answer to part (a) mean that there are no economies of scale with respect to jets? than it had been. In these circumstances, The implication is that because technological change has made it possible for firms manufacturing jets to use carbon fiber parts and more efficient engines, the minimum efficient size of jets is building larger jets may lead to smaller larger
In 2007, the European airplane manufacturer Airbus began selling its "super jumbo" jet, the A380. By 2019, smaller jets using carbon fiber parts and more efficient engines were also on the market. According to an article in the Wall Street Journal, "Airlines, it turns out, preferred [the smaller jets] to the A380 and Boeing's own humpbacked giant, the 747. The smaller jets were easier to fill and could fly direct to more places around the world without funneling through hubs." Source: Robert Wall, "Airports Worried the A380 Was Too Big. Turns Out, That Wasn't the Problem," Wall Street Journal, February 14, 2019. a. What does the observation that the smaller jets were easier to fill with passengers imply about the average cost of flying a passenger in a smaller jet and in an A380? The implication is that the average cost of flying a passenger on a smaller jet is the cost of flying a passenger on a larger jet. b. Does your answer to part (a) mean that there are no economies of scale with the same as The implication is that because technological change has made it possible for fir i to use carbon fiber parts and more efficient engines, the minimum efficient size of jets is than it had been. In these circumstances, higher than building larger jets may lead to lower than