Answer:
The indifference point is 360 miles.
Explanation:
Giving the following information:
Rental 1:
Total cost= 185 + 0.25*x
x= miles driven
Rental 2:
Total cost= $275
Now, we need to equal both formulas and isolate x:
185 + 0.25x = 275
0.25x = 90
x= 90/0.25
x= 360
The indifference point is 360 miles.