Exhibit 5-3
Steve the Auto Parts Salesman Is Trying to Navigate

question 22

Essay

Exhibit 5-3
Steve the auto parts salesman is trying to navigate his way between the rural west Texas towns of Jonestown and Upland. The possible routes for this trip are shown below, along with the mileage along each route.
$\begin{array}{lrcc}\text { Origin } & & \text { Destination } & \text { Distance (miles) } \\\text { Jonestown } & \text { to } & \text { Haleyville } & 25 \\\text { Jonestown } & \text { to } & \text { Krickburg } & 55 \\\text { Jonestown } & \text { to } & \text { Karn City } & 35 \\\text { Haleyville } & \text { to } & \text { Mart } & 50 \\\text { Haleyville } & \text { to } & \text { Krickburg } & 25 \\\text { Haleyville } & \text { to } & \text { Karn City } & 30 \\\text { Karn City } & \text { to } & \text { Mart } & 50 \\\text { Karn City } & \text { to } & \text { Baker } & 65 \\\text { Krickburg } & \text { to } & \text { Karn City } & 20 \\\text { Krickburg } & \text { to } & \text { Baker } & 30 \\\text { Krickburg } & \text { to } & \text { Mart } & 45 \\\text { Mart } & \text { to } & \text { Baker } & 20 \\\text { Mart } & \text { to } & \text { Upland } & 40 \\\text { Baker } & \text { to } & \text { Upland } & 30\end{array}$
-Refer to Exhibit 5-3.Suppose the roads leading into and out of Krickburg are unpaved,so Steve would only be able to travel half of his usual 60 mile/hour speed on those routes.Modify the model to account for this condition.Would the shortest path change from the base case solution

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Definitions:

ATC

Average Total Cost, calculated by dividing total cost by the quantity of output produced.

Profit-Maximizing

A strategy or level of production where a firm makes the highest possible profit.

Firm

A business organization, such as a corporation, limited liability company, partnership, or sole proprietorship, that sells goods or services.

Fixed Costs

Business expenses that are not affected by the level of goods or services produced by the business, such as rent, salaries, and insurance.