Related to the Economics in Practice on page 151: Which of the following is the best analysis of the question of how fast delivery truck drivers should drive in order to reduce costs?
A) They should drive as quickly as possible in order to make more deliveries per day.
B) They should drive at the most fuel-efficient rate in order to reduce fuel consumption costs.
C) They should balance the concerns of speed and fuel efficiency and drive at a speed that minimizes total expenses.
D) They should drive as close to the legal speed limit as possible.

Question

Quizplus · Accepted Answer

The best analysis is to balance the concerns of speed and fuel efficiency to minimize total expenses. This takes into account both the number of deliveries and the cost of fuel consumption. It is not always beneficial to drive as quickly as possible, as this may increase fuel costs and also risk accidents or damage to the truck or its contents. Similarly, driving at the most fuel-efficient rate may not always be the best option if it means sacrificing too much delivery time. Therefore, a balance must be struck between these factors to find the optimal speed for minimizing the total expenses.

Related to the Economics in Practice on Page 151: Which