A diesel engine uses a Type A filter and high-grade lubricating oil costing $5.50 per liter. With this filter, the oil and filter have to be changed every 500 hours of operation, and 5 liters of oil have to be added every 100 hours. This filter cost $148 a piece. Eighty liters of oil fill the engine. Another type, filter B, costing $120 may be used with a lower grade oil costing $4.80 per liter. However, if this filter is used, the oil and filter have to be changed every 300 hours, and 10 liters are added after every 150 hours the engine is used. Which type of filter and oil would you recommend? Kindly show your complete solutions. Thank you
A diesel engine uses a Type A filter and high-grade lubricating oil costing $5.50 per liter. With this filter, the oil and filter have to be changed every 500 hours of operation, and 5 liters of oil have to be added every 100 hours. This filter cost $148 a piece. Eighty liters of oil fill the engine. Another type, filter B, costing $120 may be used with a lower grade oil costing $4.80 per liter. However, if this filter is used, the oil and filter have to be changed every 300 hours, and 10 liters are added after every 150 hours the engine is used. Which type of filter and oil would you recommend? Kindly show your complete solutions. Thank you
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A diesel engine uses a Type A filter and high-grade lubricating oil costing $5.50 per liter. With this filter, the oil and filter have to be changed every 500 hours of operation, and 5 liters of oil have to be added every 100 hours. This filter cost $148 a piece.
Eighty liters of oil fill the engine. Another type, filter B, costing $120 may be used with a lower grade oil costing $4.80 per liter. However, if this filter is used, the oil and
filter have to be changed every 300 hours, and 10 liters are added after every 150 hours the engine is used. Which type of filter and oil would you recommend?
Kindly show your complete solutions. Thank you
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