Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.If Maria borrows her parents' car and pays for only the gasoline,what is her total cost of driving to destination A?
A) $90
B) $250
C) $300
D) $340

Question

Quizplus · Accepted Answer

The total cost of driving includes the cost of gasoline and the opportunity cost of time. The gasoline costs $250, and the opportunity cost is 6 hours * $15/hour = $90. Therefore, the total cost of driving is $250 + $90 = $340.

Maria Has to Choose Between Driving and Taking a Train