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Economics General Electric announced that it is pushing further into 3D printing in an effort to expand its ability to make aircraft components and other
Economics General Electric announced that it is pushing further into 3D printing in an effort to "expand its ability to make aircraft components and other parts with the new manufacturing technology," (The Wall Street Journal, 9/7/16). GE claims that it will be able to cut cost by anywhere from $3B to $5B across the company, since the technology would reduce design and material costs, also reducing waste. Further, the 3D manufactured designs enabled GE to eliminate almost 1000 parts from the design of a new turboprop engine, significantly cutting the engine's weight. Since 2010, GE invested about $1.5B in 'additive manufacturing' (i.e., 3D printing) technologies. This has dramatically impacted GE's average aircraft engine manufacturing costs, which are as follows: A T C = 10 + 1500 q + q where costs are measured in millions of dollars and output (q) is the number of aircraft engines. A) At the level of production that you recommend (226 profit maximizing price & 96 profit maximizing output), is GE's output in a range of economies of scale or diseconomies of scale? Explain
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