Evaluate alternative ways of measuring the productivity of inputs and the role of the manager in the production process.

CLO #3 – Evaluate alternative ways of measuring the productivity of inputs and the role of the manager in the production process.

Recently, the Boeing Commercial Airline Group (BCAG) recorded orders for more than 15,000 jetliners and delivered more than 13,000 airplanes. To maintain its output volume, this Boeing division combines efforts of capital and more than 90,000 workers. Suppose the European company Airbus enjoys a similar production technology and produces a similar number of aircraft but that labor costs (including fringe benefits) are higher in Europe than in the United States. Would you expect workers at Airbus to have the same marginal product as workers at Boeing? Explain carefully.

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