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.”
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?
b. Does your answer to part (a) mean that there are no economies of scale with respect to jets? Briefly explain.