Please Answer all. Thank you. `This is one question.
Q/ It takes 1 hour to travel from New York to Washington D.C. by air and 4 hours by train. The airfare is $200 and the train fare is $85.
If a traveler wishes to minimize the total cost of making this trip, which mode of transportation should be selected if the traveler’s opportunity cost of time spent in transit is $15 per hour?
At what wage would it make sense to switch modes of transportation? Justify your answers.