Two firms, Boeing and Airbus, produce large commercial airplanes. Boeing and Airbus have different flight control systems, with many pilots preferring one system to the other. Also, the Airbus A380, at $375.3 million, has a double-deck design that can hold up to 840 passengers. The Boeing 747 can hold up to 568 passengers, and it sells for $317.5 million. What key assumptions of the supply and demand model are violated in the large commercial airplane market?

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The Answer of Two firms, Boeing and Airbus, produce large commercial airplanes. Boeing and Airbus have different flight control systems, with many pilots preferring one system to the other. Also, the Airbus A380, at $375.3 million, has a double-deck design that can hold up to 840 passengers. The Boeing 747 can hold up to 568 passengers, and it sells for $317.5 million. What key assumptions of the supply and demand model are violated in the large commercial airplane market?

Two Firms, Boeing and Airbus, Produce Large Commercial Airplanes