Question

You are the owner of Red Skies Skydiving, a school and drop zone where those with no skydiving experience can learn how to skydive and get through the Advanced Free Fall (AFF) portion of their training in a single day, which is seven total skydives. To earn an A-license more skydives are required, but the AFF portion is what is needed before a student can solo. The only inputs you need to execute the course are instructors (two per student) and parachute sets. An airplane and pilot are also required, but the plane and pilot are needed anyway for the other skydivers so students essentially "free ride." Each parachute set is composed of a main rig (with backup), helmet, goggles, altimeter, and jumpsuit. You calculated that the cost of the parachute set is $60/set/day. On a given day, two instructors can only teach the AFF course to one student, and only one student can use a parachute set. Each instructor charges a monthly salary of US$2,250 and works 15 days a month (they really like skydiving, so they have to balance "fun time" with "work time"). Assume that each month has 30 days and that you have found a way to perfectly balance instructors among days so that you can offer the AFF course every day of the month.

1. Draw a graph showing your expansion path, isocost and isoquant curves on any given day.

Answer 1

The question asks you to draw a graph showing the expansion path, isocost, and isoquant curves for Red Skies Skydiving. To do this, you would plot the number of instructors and parachute sets on the x and y axes and draw lines to represent the expansion path, isocost curve, and isoquant curve.

Step-by-step explanation:

The question asks you to draw a graph showing the expansion path, isocost, and isoquant curves for Red Skies Skydiving. The expansion path represents the different combinations of instructors and parachute sets used to offer the AFF course every day of the month. The isocost curve represents the different combinations of instructors and parachute sets that cost the same amount, and the isoquant curve represents the different combinations of instructors and parachute sets that produce the same number of skydives or output.To draw the graph, you would typically plot the number of instructors on the x-axis and the number of parachute sets on the y-axis. The expansion path would be a line connecting the different combinations of instructors and parachute sets used. The isocost curve would be a line showing the combinations that cost the same amount, and the isoquant curve would be a line showing the combinations that produce the same output.