The price of an airline ticket from Denver to Washington, D.C. costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than
What will be an ideal response?
$10 per hour.
You might also like to view...
Which of the following is NOT one of the reasons a firm might be expected to experience economies of scale?
A) specialization B) the dimensional factor C) improved productive equipment D) depreciation
A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A. statistical discrimination. B. screening. C. disclosure laws. D. building a reputation
Suppose when the price of pineapples goes from $5 to $3 per pineapple, production decreases from 3,500 pineapples to 2,000 pineapples per year. Using the mid-point method, the percentage change in price would be:
A. 0.50 B. 50 percent C. 0.54 D. 54 percent
The addition to total physical product when one more unit of capital (or loanable funds) is used in production is called
a. marginal physical product of capital b. marginal revenue product of capital c. marginal use of loanable funds d. interest e. depreciation