contestada

by taking an airplane one can go from dallas to houston in one hour. the same trip takes 5 hours by bus. of the airfare is $90 and the bus far is $30 which would be the cheapest mode of transportation for someone who could earn $6 per hour during this time?

Respuesta :

The cheapest mode of transport would be to travel by bus.

What determines the choice

The choice between airplane and the bus would depend on the total income the individual would earn. This is known as opportunity cost.

If the individual travels by plane, it would cost $90. The income the individual would lose would be ($6 x 1) = $6.

If the individual travels by bus, it would cost $30. The income the individual would lose would be ($6 x 5) = $30. Thus, the person would choose to travel by bus.

To learn more about opportunity cost, please check: brainly.com/question/13036997