Answer:
The indifference point is 10 miles.
Explanation:
Giving the following information:
Beth:
$5 per mile
Tonya's:
registration fee of $20
$3 per mile
First, we need to structure the income formulas:
Beth= 5x
Tonya= 20 + 3x
x= miles
Now, to determine the indifference point, we equal both formulas and isolate "x":
5x = 20 + 3x
2x= 20
x=10
The indifference point is 10 miles.
Beth= 5*10= $50
Tonya= 20 + 3*10= $50