Problem: Referring to the table illustrated below, consider that hiring a driver costs $10 while each machine costs $100. Which method should he use and why?
An independent trucker has the following options. If he buys expensive machinery then he can hire fewer drivers to deliver the same output. Over the course of this month he has to deliver to SO spots. To do this job he has 4 possible combinations of output that he can use:
Method 1: 20 drivers 10 machines
Method 2: 50 drivers 2 machines
Method 3: 100 drivers 0 machines
Method 4: 10 drivers 12 machines