A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $350 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.35 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Round your answers to 1 decimal place. a. What are the MRP and MRC? MRP= MRC= Should the firm add this delivery vehicle? (Click to select) ▼ b. Now suppose that the cost of renting a vehicle doubles to $700 per day. What are the MRP and MRC? MRP= MRC=
A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $350 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.35 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Round your answers to 1 decimal place. a. What are the MRP and MRC? MRP= MRC= Should the firm add this delivery vehicle? (Click to select) ▼ b. Now suppose that the cost of renting a vehicle doubles to $700 per day. What are the MRP and MRC? MRP= MRC=
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 2CQ
Related questions
Question
Am. 103.
![A delivery company is considering adding another vehicle to its delivery fleet; each
vehicle is rented for $350 per day. Assume that the additional vehicle would be capable
of delivering 1,750 packages per day and that each package that is delivered brings in
$0.35 in revenue. Also assume that adding the delivery vehicle would not affect any
other costs.
Instructions: Round your answers to 1 decimal place.
a. What are the MRP and MRC?
MRP=
MRC=
Should the firm add this delivery vehicle? (Click to select) ▼
b. Now suppose that the cost of renting a vehicle doubles to $700 per day. What are
the MRP and MRC?
MRP=
MRC=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F292d3a7c-cd56-4dba-af43-a753c85e4f30%2F1388a829-9279-4f33-b071-df504e1134b6%2Fr3jkcmk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A delivery company is considering adding another vehicle to its delivery fleet; each
vehicle is rented for $350 per day. Assume that the additional vehicle would be capable
of delivering 1,750 packages per day and that each package that is delivered brings in
$0.35 in revenue. Also assume that adding the delivery vehicle would not affect any
other costs.
Instructions: Round your answers to 1 decimal place.
a. What are the MRP and MRC?
MRP=
MRC=
Should the firm add this delivery vehicle? (Click to select) ▼
b. Now suppose that the cost of renting a vehicle doubles to $700 per day. What are
the MRP and MRC?
MRP=
MRC=
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