There are two restaurants that serve equally good Mexican food in a small college town. One of them charges an average of $7 per plate, and usually you have to wait an hour to be seated. The other restaurant charges an average of $9 per plate, and you can usually be seated right away. How does the cost of consumption compare across these two restaurants?
a. For people with a very high opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they are willing to accept a higher money price in return for a lower time price.
b. For people with a low opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they do not have to pay a high time price.
c. For people with a very high opportunity cost of time compared to others, the restaurant with the lower money price makes more sense because they are relatively more willing to pay a high time price.
d. The restaurant with the lower money price makes more sense to both high opportunity cost of time and low opportunity cost of time consumers.
a
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