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 the opportunity cost of time increases to $80 per hour,which of the following statements is true?
A) Maria should choose to drive, as it saves her $10.
B) Maria should choose to drive, as it saves her $150.
C) Maria should choose to travel by train, as it saves her $10.
D) Maria should choose to travel by train, as it saves her $150.
Correct Answer:
Verified
Q69: The following table shows the various combinations
Q70: The following table shows the various combinations
Q71: Maria has to choose between driving and
Q72: Maria has to choose between driving and
Q73: Which of the following statements is true?
A)
Q75: The net benefit of a particular alternative
Q76: Kevin has a lot of free time,and
Q77: Out of a set of feasible alternatives,an
Q78: Maria has to choose between driving and
Q79: Maria has to choose between driving and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents