a).
To choose:An option from the given options.
a).
Answer to Problem 59P
The driver will choose the option (1) return the car with full tank.
Explanation of Solution
The driver has three options to pick given that local price is $3.5 per gallon and the car has a mileage of 25 miles per gallon and the capacity of the tank is 16 gallons and Stopping at filling station takes 20 minutes and the worth of time is $15 per hour.
The following options are as follows:
(1) return the car with full gas tank,
(2) return it without filling it and pay $5.75 per gallon or
(3) accept a fixed price of $60 for gas.
When the driver drives 150 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Therefore, the driver will choose to return the car with a full tank as the cost of filling the emptied tank is less than the fixed cost of $60.
b).
To choose:An option from the given options.
b).
Answer to Problem 59P
The driver will choose option (1) return car with full tank.
Explanation of Solution
The driver has three options to pick given that local price is $3.5 per gallon and the car has a mileage of 25 miles per gallon and the capacity of the tank is 16 gallons and Stopping at filling station takes 20 minutes and the worth of time is $15 per hour.
The following options are as follows:
(1) return the car with full gas tank,
(2) return it without filling it and pay $5.75 per gallon or
(3) accept a fixed price of $60 for gas.
When the driver drives 300 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Therefore, the driver will choose to return the car with a full tank as the cost of filling the emptied tank is less than the fixed cost of $60.
c).
To choose:An option from the given options.
c).
Answer to Problem 59P
The driver will choose option (3) accept a fixed price of $60 for gas.
Explanation of Solution
The driver has three options to pick given that local price is $3.5 per gallon and the car has a mileage of 25 miles per gallon and the capacity of the tank is 16 gallons and Stopping at filling station takes 20 minutes and the worth of time is $15 per hour.
The following options are as follows:
(1) return the car with full gas tank,
(2) return it without filling it and pay $5.75 per gallon or
(3) accept a fixed price of $60 for gas.
When the driver drives 450 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.
d).
To choose:An option from the given options.
d).
Explanation of Solution
The driver has three options to pick given that local price is $3.5 per gallon and the car has a mileage of 25 miles per gallon and the capacity of the tank is 16 gallons and Stopping at filling station takes 20 minutes and the worth of time is $15 per hour.
The following options are as follows:
(1) return the car with full gas tank,
(2) return it without filling it and pay $5.75 per gallon or
(3) accept a fixed price of $60 for gas.
When stopping at filling station takes 20 minutes and the worth of time is $15 per hour how it will affect the decision of driver.
The cost of stopping at the gas station is calculated as follows:
Part (a) When the driver drives 150 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Even after considering the cost of stopping at gas station driver will choose option (1) return with a full tank.
Part (b) When the driver drives 300 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Even after considering the cost of stopping at gas station driver will choose option (1) return with a full tank.
Part (c)When the driver drives 450 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.
Want to see more full solutions like this?
Chapter 1 Solutions
ENGR.ECONOMIC ANALYSIS
- Badly need this soon as possible.arrow_forwardSara has health insurance with a $2,000 annual deductible, a $3,000 stop loss provision and 80/20 coinsurance. Her first claim of the year is for a $10,000 medical bill. How much will she need to pay on this claim?arrow_forwardonly Iv pleasearrow_forward
- please as soon as possible , and accurate answerarrow_forwardI need help soon as possible I only have 30 minutesarrow_forwardImagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks show. Your staff survey your 400 citizens who say that they each value a fireworks show at $10. The fireworks show only costs $3,000 so you put on the show but when you ask for donations to pay for the fireworks you only receive $25 total. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. You staff's survey must have overestimated the value of a fireworks show. b The fireworks cost must have been greater than their economic benefit. The firework show suffered from the Tragedy of the Commons problems d The town's citizens were free-riders.arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co