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Recently, an USA-based Airline Group recorded orders for more than 15,000 jetliners and delivered more than 13,000 airplanes. To maintain its output volume, this company
Recently, an USA-based Airline Group recorded orders for more than 15,000 jetliners and delivered more than 13,000 airplanes. To maintain its output volume, this company combines efforts of capital and more than 90,000 workers. Suppose an European Company enjoys a similar production technology and produces a similar number of aircraft, but that labour costs are higher in Europe than in the U.S. Would you expect workers of these two companies to have the same marginal product? Explain.
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