Jasmine Started a Lawn-Fertilizing Business and Is Considering Purchasing a Powered

Essay

Jasmine started a lawn-fertilizing business and is considering purchasing a powered fertilizer spreader or a self-propelled spreader. The powered spreader has a fixed cost of $4,000 for the season, whereas the self-propelled spreader has a fixed cost of only $100 for the season. The variable costs of fertilizing a lawn with the powered spreader and self-propelled spreader are $7 and $15, respectively.
a. Draw the total cost curves of fertilizing lawns using the powered spreader and the self-propelled spreader.
b. If Jasmine is expected to fertilize 400 lawns for the season, which production method should she choose?
c. How many lawns does Jasmine have to fertilize for it to make sense to use the powered spreader?