ECONOMICS

Economics Questions



Economics Questions

Question 2

Table presented below shows the cost that will be incurred by the independent trucker using each method for delivery of output to 50 spots.

Driver Cost

$ 10

Machine Cost

$ 100

Method

Number of Drivers

Number of Machines

Total Driver Cost

Total Machine Cost

Total Cost

Method 1

20

10

$ 200 $ 1,000 $ 1,200

Method 2

50

2

$ 500 $ 200 $ 700

Method 3

100

0

$ 1,000 $ - $ 1,000

Method 4

10

12

$ 100 $ 1,200 $ 1,300

Above calculation shows that the truck driver should prefer hiring 50 drivers and purchasing 2 machines. Under this method, total cost that will be incurred ...