You are thinking about traveling to visit friends in Portland. You can fly or take the bus. A ROUND-TRIP plane ticket costs $300, and it takes three hours to get from your house to your friend’s house if you fly. A ROUND-TRIP bus ticket costs $150 and it takes 10 hours to get door-to-door using the bus. What is the minimum value of your time necessary to induce you to buy the plane ticket instead of taking the bus

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19-09-2016
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You are thinking about traveling to visit friends in Portland. You can fly or take the bus. A ROUND-TRIP plane ticket costs $300, and it takes three hours to get from your house to your friend’s house if you fly. A ROUND-TRIP bus ticket costs $150 and it takes 10 hours to get door-to-door using the bus. What is the minimum value of your time necessary to induce you to buy the plane ticket instead of taking the bus

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soyrbto soyrbto · Answer 1 · 2016-09-28T19:15:03+02:00

soyrbto soyrbto

28-09-2016

The value of your time depends on how you travel:
- If you take a plane, this means; 3 hours = $300 or 1 hour = $100
- If you take a bus, means that; 10 hours = $150 or 1 hour = $15

so, your minimum time must be valued at least at $100 per hour to decide to take the plane instead of the bus.

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