Write total cost functions for truck in terms of quantity


Problem

Suppose you have the problem of delivering 500 lb. boxes from Washington, D.C. to Baltimore and are considering the purchase of a truck. You have in mind either a small truck (capacity of 1,500 lbs. and a cost of $2,500 a year) or a large truck (capacity of 4,000 lbs. and a cost of $10,000 a year). The cost of gasoline, maintenance, and the driver is $24 per round trip for either truck. You may assume that the trucks run at capacity, rather than taking partial loads.

Write total cost functions for each truck in terms of the quantity of boxes carried per year.

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Econometrics: Write total cost functions for truck in terms of quantity
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