5 points Save Answo QUESTION 5 State the correct economic cr

5 points Save Answo QUESTION 5 State the correct economic criterion for the following problem: A recently graduated engineer has decided to return to school in the evenings to obtain a master\'s degree. He feels it should be accomplished in a manner that will allow him to maximize amount of time for his regular day job plus time for recreation. In working for the degree, he will O A Minimize inputs O B.Answer not listed C. Maximize outputs OD. Maximize the difference between outputs and inputs QUESTION 6 Two manufacturing firms empty. Each driver costs $275 per day with benefits How much could each firm save weekly if each sent its truck twice a week and hauled the other firm\'s cargo on the return trip? in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return (the round trip takes all day) and each firm has truck operating costs of $1.20 par mile. Do not include units in the answer

Solution

5) Answer: C

Maximize outputs.

As he does not want to change in his daily routine like work hours, recreation time which are inputs so at that input is same through out which means he has to maximize the output by getting degree with these inputs which is larger than his previous output thus making him profitable.

6) Cost of one trip = driver cost + operating cost = 275 + 1.2 x90 = 383$

Cost of trip per week = 4x383 = 1532$

So for both the companies the total cost in a week = 1532x2 = 3064$

Now if both companies use same truck to load and unload

For one trip the cost will be = driver cost + operating cost of company A + operating cost of company B

For one trip the cost will be = 275 + 1.2x90 + 1.2x90 = 491$

Cost for company A = 2 x 491 = 982

Company B = 2x491 = 982

So the total cost for a week trip = 982+982 = 1964$

SO savings for both companies together = 3064-1964 = 1100$