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's opportunity cost of time increases to $80 per hour,the cost of driving to destination A is ________.
A) $480
B) $730
C) $800
D) $970

Question

Quizplus · Accepted Answer

The cost of driving includes the gasoline cost ($250) and the opportunity cost of time (6 hours * $80/hour = $480), totaling $730.

Maria Has to Choose Between Driving and Taking a Train