Question

The price of an airline ticket from Denver to Washington, D.C. costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than

Answer 1

Explanation:

Given that the price of an The price of an airline ticket from Denver to Washington, D.C. costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus.

Difference in time
`= 51-6 = 45 hours`

Difference in fares
`= 600-150 = 450 dollars`

If other things remain the same the time lost is 45 hours and money diference 450 dollars

If each hour is more than
`(450)/(45) =10` dollars, he would gain by using air travel.