Two parcel delivery companies: what scale does to cost and price
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The prompt
Illustrative numbers, fictional companies. Two parcel delivery companies in the United States each charge USD 7 a parcel. Each spends USD 4 a parcel on drivers and fuel. BigPost runs a national network of hubs and software costing USD 60 million a year and delivers 30 million parcels. SmallPost runs a smaller network costing USD 20 million a year and delivers 8 million parcels. What is each one's cost per parcel and profit, and what happens if BigPost cuts its price to USD 6.50?
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