You are thinking about traveling to visit friends in Atlanta. You can fly or take the bus. A round-trip plane ticket costs $300, and it takes 3 hours one way to get from your house to your friend's house if you fly. A round-trip bus ticket costs $150, and it takes 10 hours one way using the bus.

What is the value of your time necessary to induce you to buy the plane ticket instead of taking the bus?

A. greater than $10.71/hour

B. greater than $15.00/hour

C. greater than $21.43/hour

D. greater than $100.00/hour

Question

Business

Fritz

14 August, 08:51

You are thinking about traveling to visit friends in Atlanta. You can fly or take the bus. A round-trip plane ticket costs $300, and it takes 3 hours one way to get from your house to your friend's house if you fly. A round-trip bus ticket costs $150, and it takes 10 hours one way using the bus.

What is the value of your time necessary to induce you to buy the plane ticket instead of taking the bus?

A. greater than $10.71/hour

B. greater than $15.00/hour

C. greater than $21.43/hour

D. greater than $100.00/hour

+4

Answers (1)

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London Barron · Answer 1

The correct answer is D. greater than $100.00/hour.

If we calculate it, the plane ticket that costs $300 for 3 hours is equivalent to $100 per hour. On the other hand, the bus ride will cost $150 per 10 hours which is equivalent to $15 per hour. Since your time values more than the $100 per hour, you will buy the plane ticket instead of taking the bus.