Page Litton likes to use her credit card to buy gas since she can defer payment for 30 days. However, she notices that her dealer charges 3 cents more per gallon than if she paid with cash. Page estimates paying about $1

00 a gallon for gas, and her monthly credit statement shows an APR of 18 %. Given this information, Page should
A)

continue using her card since the opportunity cost of paying in cash is less than 18% a year.
B)

pay with cash since its opportunity cost is about 36% a year.
C)

continue using her card, the effective cost of using cash is about 36% a year.
D)

you can't tell unless you know how much gas she will buy.


B

Business

You might also like to view...

A résumé should be written

A) with the expectation of getting the job. B) in two pages or less. C) in detail so the employer has no doubt about skills and experiences. D) with repletion of skills and accomplishments. E) with simplicity, using a direct style.

Business

Giselle is happy with her job at the firm. She works hard during the week and accomplishes her tasks on time. She spends her time on the weekend volunteering with her philanthropy group. The philanthropy group does not have anything to do with the firm. She just enjoys working on projects for less fortunate people. Giselle is ______.

A. extrinsically motivated B. extraneously motivated C. inherently motivated D. intrinsically motivated

Business

What major discovery did Hawthorne uncover in his research? How did he come across this finding?

What will be an ideal response?

Business

A(n) ________ is an emergency action that a WTO member state may take in order to protect its domestic industry from serious injury due to a sudden increase in the quantity of an imported product

A. servitude B. safeguard C. delict D. usus

Business