Sally wants to visit Orlando during her week-long spring break.She can get there by bus in two and one-half days or fly there in four hours.The round trip by bus and plane would cost $20 and $200,respectively.Which of the following is not true?
A) She would compare the marginal utility of per dollar spent on air travel with that spent on bus travel.
B) Depending on what else she could do during that week, it may be economically rational for her not to go at all rather than go by bus.
C) The true cost of going to Orlando is either the time or the money she spends traveling, whichever she values more.
D) The more she enjoys Orlando, the more economically rational it becomes for her to fly there instead of taking the bus.
E) It may be rational for her to fly and rational for others to take the bus.
Correct Answer:
Verified
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