The Producer Tagalog Version Full Video
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Produce is grown on a farm by a farmer. On a large farm, this may be a family operation, while a smaller farm may be the responsibility of an individual. On a small farm, it may include cultivating the land, producing animals, and some horticulture.
One day the farmer decides to head into town to pick up supplies, and he needs to hire a tractor to help him move his produce on the truck. The tractor driver is able to charge more than if they charged by the mile. This is because of the greater need for the tractor than the truck. Consequently, the farmer will pay more for the tractor than for the use of the truck. This price differential is called the marginal cost.
The truck owner is hiring out trucks to haul produce to markets in the back of their trucks, and to haul stock to auction. Because of this span of time, the truck owner can maximize profits by deciding which trucks yield the best rate of return in terms of labor, fuel, and other expenses. For example, during the winter averaging 20-25 miles per hour requires fuel, thus trucks that spend little time on the road will likely be cheaper to operate.
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