Related to the Economics in Practice on page 155: You own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. The speed at which you instruct the driver to drive depends on
A) the driver's wage only.
B) the price of gasoline only.
C) the driver's wage and the price of gasoline.
D) neither the driver's wage nor the price of gasoline.

Question

Quizplus · Accepted Answer

The speed at which you instruct the driver to drive would depend on both the driver's wage and the price of gasoline. A higher wage might incentivize faster delivery to maximize the number of deliveries within a paid period, while higher gasoline prices might encourage slower driving to improve fuel efficiency and reduce costs.

Related to the Economics in Practice on Page 155: You