Question
Suppose a local lawn company is considering buying a robotic lawn mower or a standard push mower. The robotic mower has a fixed cost of
Suppose a local lawn company is considering buying a robotic lawn mower or a standard push mower. The robotic mower has a fixed cost of $3,000 for the season, whereas the push mower has a fixed cost of only $200 for the season. The variable cost of mowing a lawn with the robotic and push mower are $5 and $20, respectively. a. Write down the total cost function for mowing lawns using the robotic mower and the push mower. Graph the curves. b. If the lawn company expects to mow 400 lawns this season, which production method should they choose? c. How many lawns do they have to mow for it to make sense to use the robotic mower?
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