Scenario: Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the number of hours per month it takes to commute to work from each apartment. Ryan's opportunity cost of time is $15 per hour.

-Refer to the scenario above.What is the total cost incurred per month if Ryan rents Apartment 5?
A) $2,150
B) $2,270
C) $2,400
D) $2,265

Question

Scenario: Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the number of hours per month it takes to commute to work from each apartment. Ryan's opportunity cost of time is $15 per hour.
 
-Refer to the scenario above.What is the total cost incurred per month if Ryan rents Apartment 5?
A) $2,150 
B) $2,270 
C) $2,400 
D) $2,265

Quizplus · Accepted Answer

To calculate the total cost incurred per month, we need to consider the rent of Apartment 5 and the opportunity cost of time for the commuting hours. 
Rent of Apartment 5: $1,800
Number of commuting hours per month for Apartment 5: 40
Opportunity cost of time per hour: $15
Total cost of commuting for Apartment 5: 40 x $15 = $600
Total cost incurred per month for Apartment 5: $1,800 + $600 = $2,400
Therefore, the correct answer is D.

Scenario: Ryan Wants to Rent an Apartment