Ask Question
BusinessBusiness
17 July, 16:02

Maria has to choose between driving and taking a train to destination A. Travelling 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.

Which of the following statements is true?

A. Maria should choose to drive as it saves her $150

B. Maria should choose to travel by train as it saves her S150 °

C. Maria should choose to travel by train as it saves her $10.

D. Mana should choose to drive as t saves her $10

+3
Answers (1)
  1. 17 July, 17:53
    0
    None of the options are correct

    Explanation:

    The train would cost her, which is computed as:

    = Cost + (Hours * Opportunity Cost)

    = $400 + (4 hours * $15 per hour)

    = $400 + $60

    = $460

    The driving would cost her, which is computed as:

    = Cost + (Hours * Opportunity Cost)

    = $250 + (6 hours * $15 per hour)

    = $250 + $90

    = $340

    Savings = Train Cost - Driving Cost

    = $460 - $340

    =$120

    None of the options are correct as the she would save $120.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Maria has to choose between driving and taking a train to destination A. Travelling by train will cost her $400 and will take 4 hours. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A department store has budgeted sales of 12,400 men's suits in September. Management wants to have 6,400 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,400 suits.
Answers (1)
The Town of Conway opened a solid waste landfill in 1995 that is filled to capacity in the current year. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill was closed.
Answers (1)
1. When demand curve is elastic, a. price and total expenditure move in the same direction. b. price and total expenditure move in the opposite direction. c. price may be rising or falling but total expenditure is constant. d.
Answers (1)
The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470).
Answers (1)
What process involves reducing the number of employees on the payroll to cut costs and increase profits?
Answers (1)
New Questions in Business
On January 1, you sold one February maturity S&P 500 Index futures contract at a futures price of 2,422. If the futures price is 2,505 at contract maturity, what is your profit? The contract multiplier is $50. (Input the amount as positive value.)
Answers (1)
Under which market structure does a firm have the most influence over product pricing?
Answers (1)
Which of the following actions may be taken by a corporation's board of directors without shareholder approval? Dissolving the corporation. Selling substantially all of the corporation's assets not in the regular course of business.
Answers (1)
A t account for cash cannot contain any credits. false true
Answers (1)
which theory views the global economic system as divided between nations that control wealth and those that provide natural resources and labor?
Answers (1)
Home » Business » Maria has to choose between driving and taking a train to destination A. Travelling 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.
Sign Up Forgot Password?