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Vsevolod [243]
3 years ago
14

An Uber driver faces costs for driving that include sunk costs like insurance that contribute $.50 to the average cost per mile.

Yet when a rider offers to pay less than $0.50 per mile for a ride, the driver agrees because
Business
1 answer:
KonstantinChe [14]3 years ago
3 0

Answer:

sunk costs like auto insurance (in this case) do not increase as driving increases

Explanation:

In the case when the uber driver faces cost for driving so the sunk cost such as insurance that contribute $0.50 but the other rider pay lower than $0.50 per mile so here the driver agrees as the sunk cost would not increased in the same way like driving rises.

Therefore the above represent the answer

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