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Maria has to choose between driving and taking a train to destination A. Traveling by train will ...

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Maria has to choose between driving and taking a train to destination A. Traveling by train will ...

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?

▸ $90

▸ $340

▸ $300

▸ $250

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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Correct

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