Which of the following statements about the opportunity cost of an airplane flight is the most accurate?
A) It is identical for all passengers and equal to the number of hours a particular flight takes.
B) It differs across passengers to the extent that both the airfare paid and the highest valued use of travel time vary.
C) It is equal to the cost of a bus ticket, the next best form of alternative transportation to flying.
D) It differs across passengers only to the extent that each traveller pays a different airfare.

Question

Quizplus · Accepted Answer

Opportunity cost varies across passengers as each person values their time differently and may have different alternatives to flying, such as driving or taking a train. Additionally, the airfare paid may also vary, affecting the opportunity cost for each passenger. Option A and C are incorrect as they do not consider individual differences in opportunity cost, and Option D is incomplete as it only considers the airfare paid.

Which of the Following Statements About the Opportunity Cost of an Airplane