Miguel decides how many taco trucks to buy to start a street taco business. He decides that 4 trucks will maximize his profits. Then the bank where he planned to borrow to finance his investment calls him and tells that his interest rate went up from 8% to 11%. What is the optimal number of trucks to buy now?   a. 2   b. 3   c. 4   d. 5   e. There is insufficient information to answer the question

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Miguel decides how many taco trucks to buy to start a street taco business. He decides that 4 trucks will maximize his profits. Then the bank where he planned to borrow to finance his investment calls him and tells that his interest rate went up from 8% to 11%. What is the optimal number of trucks to buy now?

  a.

2

  b.

3

  c.

4

  d.

5

  e.

There is insufficient information to answer the question

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