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Assuming he is economically rational, (i) what is the minimum price the truck owner could have quoted to the supermarket, and (ii) what is the

Assuming he is economically rational, (i) what is the minimum price the truck owner could have quoted to the supermarket, and (ii) what is the minimum price the truck owner could accept to deliver the kegs of beer to Adelaide?

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A supermarket wants a load of instant coffee delivered from its Adelaide warehouse to its Alice Springs warehouse. It engages an Adelaide trucking company to transport the load. The costs to the truck owner of delivering this load to Alice Springs are as follows: Adelaide to Alice Springs with load Fuel cost 1,000 Labour cost 700 Maintenance cost 500 Total 2.200 The truck owner accepts the job, knowing that his truck will be empty on the return trip to Adelaide. The costs associated with driving back from Alice Springs to Adelaide are as follows: Alice Springs to Adelaide empty Fuel cost 800 Labour cost 700 Maintenance cost $ 400 Total $ 1,900 Fortunately, as luck would have it, after he delivers the coffee in Alice Springs, the truck owner is approached by a beer company that wants a load of beer kegs delivered to its Adelaide distributors. This would cost the same as making the delivery from Adelaide to Alice Springs. Assuming he is economically rational, (i) what is the minimum price the truck owner could have quoted to the supermarket, and (ii) what is the minimum price the truck owner could accept to deliver the kegs of beer to Adelaide? a. $4100, 50 O b. $4400, $400 O C. $4100, $2200 O d. $4100, $300 O e. $2200, $1900 Of. $2200, $2200

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