An airline ticket from Baltimore to Miami costs $425. A bus ticket is $125. Traveling by plane will take 5 hours, compared with 35 hours by bus. Thus, the plane costs $300 more but saves 30 hours of time. Rosemarie will gain by choosing air travel if, and only if, each hour of her time is valued at more than

A. $10 per hour.

B. $20 per hour.

C. $30 per hour.

D. $100 per hour.

Question

Dalia Rosales

Business

5 May, 10:15

An airline ticket from Baltimore to Miami costs $425. A bus ticket is $125. Traveling by plane will take 5 hours, compared with 35 hours by bus. Thus, the plane costs $300 more but saves 30 hours of time. Rosemarie will gain by choosing air travel if, and only if, each hour of her time is valued at more than

A. $10 per hour.

B. $20 per hour.

C. $30 per hour.

D. $100 per hour.

+4

Answers (1)

Know the Answer?

Alfred · Answer 1

Rosemarie will gain if her time is valued at more than $10 per hour.

Explanation:

Rosemarie will gain only is her time is valued more than the difference between the cost of the two transports, divided by the difference in time.

So, if her time is valued at more than 300/30 = $10, she have to choose the plane over the bus. Otherwise, she will lose.