Referring to the table above, hiring a driver costs $10. Each machine costs $100. Which method...

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Referring to the table above, hiring a driver costs $10. Each machine costs $100. Which method should he use and why?
An independent trucker has the following options. If he buys expensive machinery then he can hire fewer drivers to deliver the same output. Over the course of this month he has to deliver to 50 spots. To do this job he has 4 possible combinations of output that he can use:
Method 1:
20 drivers
10 machines
Method 2:
50 drivers
2 machines
Method 3:
100 drivers
0 machines
Method 4:
10 drivers
12 machines

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Robert · Accepted Answer

Referring to the table above, hiring a driver costs $10. Each machine costs $100. Which method should he use and why?
The driver should minimize his costs.
From method 1, his total costs are = (20*10) + (10*100) = $1200
From method 2, his total costs are = (50*10) + (2*100) = $700
From method 3,

Referring to the table above, hiring a driver costs $10. Each machine costs $100. Which method should he use and why? An independent trucker has the following options. If he buys expensive machinery...

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