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youngbloodz youngbloodz
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A year ago
Wendy has to decide between taking a flight and driving to California. Air tickets cost $800 and will get her to California in 2 hours. If she decides to drive, she would need $300 worth of gasoline and 10 hours to reach her destination. Suppose Wendy's opportunity cost of time is $20 per hour.
a) Assuming that there are no other costs involved, use cost-benefit analysis to decide whether she should fly or drive to California.
b) If Wendy has an important business meeting to attend and this increases her opportunity cost of time to $200 per hour, will her optimum decision change? Explain.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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smiller94107smiller94107
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A year ago
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youngbloodz Author
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A year ago
Smart ... Thanks!
acaruso
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Yesterday
Brilliant ツ
tcat
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2 hours ago
Thank you, thank you, thank you!
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