Related to the Economics in Practice on page 157: 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

Option A is not the best analysis because driving as quickly as possible may result in higher fuel consumption, higher maintenance costs and higher probability of accidents that may increase overall costs. 
Option B is also not the best analysis because while driving at the most fuel-efficient rate may help reduce fuel expenditure, it may lead to slower deliveries, reducing the number of deliveries per day. 
Option D is not the best analysis because driving too slow can also be costly due to extended working hours that may lead to increased labor costs, loss of potential deliveries and increased vehicle maintenance due to frequent starts and stops. 
Option C is the best analysis because it seeks to balance the trade-off between speed and fuel efficiency, which can help minimize total expenses. Drivers need to consider factors such as fuel consumption costs, travel time, driver wages and maintenance costs in order to determine an optimal speed that balances all of these factors.

Related to the Economics in Practice on Page 157: Which