Question

The next two questions refer to the following Consider the following production for a delivery service...

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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