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Q. 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:
drivers $10 and machines $100method 1 20drivers 10machinesmethod 2 50drivers 2machinesmethod 3 100drivers 0machinesmethod4 10drivers 12machines
Elucidate which one is the best? Do we use the production function equation? Or are we considering fixed cost compare to variable costs? Explain where do we begin with this one?
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