The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy 10 gallons of gas a week. As

Question

3 years ago

8

The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy 10 gallons of gas a week. As

sume that I value my time at $10 per hour and it takes me 1/2 hour to drive to and from the faraway station. For simplicity, assume the travel cost to the local station is zero miles and damage/depreciation of my car is trivial on the trip to the faraway station. Should I buy my gas at the faraway station

Business

1 answer:

Tems11 [23] · Answer 1 · 2022-01-07T12:24:40+03:00

Tems11 [23]3 years ago

3 0

Answer:

No

Explanation:

Because its better u save 0.3*10=3 dollars but I value my time for $5 for that half an hour and hence its better not to go considering opportunity cost.