Ask Question
5 January, 19:21

Air travel from New York to Los Angeles costs $800 and takes four hours. A bus ticket between the cities costs $100 and takes 104 hours. Other things constant, the minimum value of one's time that would induce a rational individual to fly rather than drive would be:

+3
Answers (1)
  1. 5 January, 19:38
    0
    a rational individual, whos time is worth more than 7 dollar per hour would induce to fly rather than drive.

    Explanation:

    bus option $100 104 hours

    flight option $800 4 hours

    differential $700 100 hours

    the differential of 700 dollars allows the consumer to save 100 hours

    700/100 = 7 dollar per hour

    if a consumer values their time at more than $7 per hour, then it will be better for this consumer to purchase a flight to Ny to LA
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Air travel from New York to Los Angeles costs $800 and takes four hours. A bus ticket between the cities costs $100 and takes 104 hours. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers