travel from New York to Los Angeles costs $800 and takesfour hours. A bus ticket between the cities costs $100 and takes 104 hours. Other things constant, the minimum value of one'stime that would induce a rational individual to fly rather thandrive would be:

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Quizplus · Accepted Answer

The cost difference between flying and taking the bus is $700 ($800-$100). The time difference is 100 hours (104-4). Therefore, the opportunity cost of flying (the cost of giving up the 100 hours it takes to take the bus) is $7 per hour ($700/100 hours). So, if an individual values their time at less than $7 per hour, they would choose to take the bus. If they value their time at more than $7 per hour, they would choose to fly. Therefore, the minimum value of one's time to choose flying over driving would be $7 per hour.

Travel from New York to Los Angeles Costs $800 and Takesfour