The next two questions refer to the following
Consider the following production for a delivery service
Number of trucks 0,1,2,3,4,5
Number of deliveries0,100,170,230,280,300
Each delivery generates $200 in gross revenue and the tax rate is 10 percent on profits. Each truck cost $11,000
The optimal number of trucks is
a.1
b.2
c.3
d.4
e.5
The net (after tax) profit will be
a.$4,500
b.$8,100
c.$10,800
d. $11,700
e.$12,400
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