Managerial Economics Discussion: Federal Express enters into contracts with independent truck operators who offer FedEx service and who are rewarded by the volume of packages they carry. According t

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Managerial Economics Discussion:  Federal Express enters into contracts with independent truck operators who offer FedEx service and who are rewarded by the volume of packagesthey carry.

According to this information, answer the following questions:

Why doesn’t FedEx buy more trucks and hire more drivers? What incentive problems might arise from this arrangement?

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