The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy 10 gallons of gas a week. Assume that I value my time at $10 per hour and it takes me 1/2 hour to drive to and from the faraway station. For simplicity, assume the travel cost to the local station is zero miles and damage/depreciation of my car is trivial on the trip to the faraway station. Should I buy my gas at the faraway station? O yes no

The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy 10 gallons of gas a week. Assume that I value my time at $10 per hour and it takes me 1/2 hour to drive to and from the faraway station. For simplicity, assume the travel cost to the local station is zero miles and damage/depreciation of my car is trivial on the trip to the faraway station. Should I buy my gas at the faraway station? O yes no

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: v

A: Investment, in the context of economics, refers to the expenditure on capital goods, such as…

Q: You have the opportunity to live in a 3 bedroom 3.5 bath on Miami Beach in a Luxury Condo or in…

A: This question focuses on to evaluate both properties, understand their amenities and community…

Q: A diesel refinery is upstream of an industrial farm. The runoff from the refinery pollutes the river…

A: The social optimum output level shows all the costs and benefits associated with a transaction i.e.…

Q: What is he social and financial implictions of generic pricing decisions for various stakeholders?

A: The pricing of generic medicine has a wide effect on different stakeholders, major stakeholders are…

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: With the existence of a transaction cost of $90 which has to be split between the two that is $45…

Q: How does a progreesive tax act as an automatic stablizer

A: The term automatic stabilizer refers to a fiscal policy formulation that is designed as an immediate…

Q: a) Suppose that Ben and Wil compete in prices and set prices simultaneously (i.e. assume Bertrand…

A: examine the pricing strategies of Ben and Will. Given that both compete on price and set their…

Q: Which are the three aspects of the replacement problem?

A: Replacement problem is important to understand as one needs to realize the cost at which asset is…

Q: If you rent a car, you can (1) return it with a full gas tank, (2) return it without filling it and…

A: Essential vehicle administrations, for example, oil changes, transmission flushes and tire…

Q: Bird Wing Bedding can lease an asset for 4 years with payments of $19,000 due at the beginning of…

A: A lease rate is paid for renting an asset, such as real estate or a car, for a certain period. The…

Q: It will cost you $275/ton for you to apply fertilizer (X) to your corn (Q). Given the yield…

A: Cost to apply fertilizer = 275 per tonYield Dat for fertilizer -Amount of…

Q: How would present a loss and or an expense or damage claim?

A: Development contracts will by and large accommodate the contractor to guarantee direct loss and…

Q: Store Local Department Store Across Town Neighboring City Travel Time Each Way (Minutes) 15 30 60…

A: Introduction:The sum of all costs spent by a firm in achieving a given level of production is known…

Q: . The Great Outdoors Tent can be purchased from a wholesaler for $58 less discounts of 30% and 7%.…

A: Price: It refers to the cost of goods and services. The less the price of the goods and services the…

Q: Amex Toy Makers, Inc. markets toys they know pose a possible serious hazard to children under…

A: In a market, when a firm produces a product or service, there used to be some positive or negative…

Q: Match the following costs to the correct classification of environmental cost. Cost Cleaning up a…

A: The term environmental cost refers to the expenditures made in relation to environmental effects.…

Q: What companies have failed to adequately respond and adapt to the COVID-19 economy?

A: In some parts of the world, COVID-19 appears to be approaching endemicity.

Question

The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy
10 gallons of gas a week. Assume that I value my time at $10 per hour and it takes me 1/2 hour to
drive to and from the faraway station. For simplicity, assume the travel cost to the local station is
zero miles and damage/depreciation of my car is trivial on the trip to the faraway station. Should I
buy my gas at the faraway station?
O
yes
no

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

2. Mang Oleh Kembang in Lembang has 10 major fields that are used to grow Mango. The productivity of each field is expressed as follows: Annual Yield, Hundreds of Kilograms Field 1 2000 Field 2 1800 Field 3 1750 Field 4 1625 Field 5 1500 Field 6 1450 Field 7 1375 Field 8 1225 Field 9 8500 Field 7250 10 Assume that each field is the same size and that the variable costs of farming are $74,600 per year per field. The variable costs cover labour and machinery time, which is rented. Tamima farm must decide each year how many fields to plant. a. In 2017, corn farmers received $5.15 per 100 KG. How many fields did Tamima plant? Explain. b. By 2020, the price of corn had fallen to $4.23 per 100 KG. How will this price decrease change Tamima's decision? How will it affect his demand for labour?
Jeff, a 56 year old professor is subject to a 28% tax rate. He has had a family emergency and must withdraw $5,000 from his IRA to fund it. How much money will he owe the government for this withdrawal?
After developing the new Personal computer with special functions the company would need to be cautious. Although there are patents out protecting the design of this new computer it is still possible for others to see the design and create something similar based off of it. Although licensing the brand would greatly benefit the cost of production and relieve most of the cost from transportation it would be wise to not give another company the opportunity to see the design. Creating the company in the home-country and exporting would help keep the design to ourselves and is therefore safe. However, doing this will increase the cost of transportation significantly. A third option that the company has is to wholly own a subsidiary. This will allow the company to control all matters regarding the production strategy as well as the marketing aspect. Setting up a wholly owned subsidiary is expensive and a major risk as it requires the parent company to commit 100% of the equity contributed.…
You as a businessperson have one million dollars to invest. One option is to invest your money. in a saving account that gives you 8% annual interest rate. But you decide to open a book store instead. You need to rent a place for $7900 per month and hire two workers and pay them each $6000 monthly. The other expenses such as purchases and overhead are $6500 per month. Your store generates $395,000 sales per year. How much is your economic profit? Which business do you choose? explain
Pls help ASAP
Problem 2 Archibald Architecture and Erin's Engineers are two firms that are working together to build a new li- brary for the local community. They must each contribute some amount of resources to the build: Archibald will contribute a units of resources at a cost of a², and Erin will contribute e units at a cost of 2e². The final value of the build is 10(a + e -ae), which Archibald and Erin split equally, so that each receives a revenue of 5(a + e - ae). (a) Write down Archibald and Erin's payoff functions. (b) Suppose that the only resource contribution options available are 0,1 and 2. Archibald and Erin must make their decisions simultaneously without consulting one another. i. Compute the payoffs that correspond to w, x, y and z in the matrix below. Erin 1 5,3 Archibald 0 1 2 0 0, w 4,5 4,3 6,10 y, 3 2 10, x 4, -3 2,-8 ii. Is (0,0) is a Nash equilibrium in this game? Justify your assertion in no more than 25 words. iii. Is a resource contribution level of 2 rationalisable for…
Pompeii's Pizza has a delivery car that it uses for pizza deliveries. The transmission needs to be replaced and there are several other repairs that need to be done. The car is nearing the end of its life, so the options are to either overhaul the car or replace it with a new car. Pompeii's has put together the following budgetary items: Present Car New Car Purchase cost new $32,000 Transmission and other repairs $8,000 Annual cash operating cost 13,000 11,000 Fair market value now 5,000 Fair market value in five years 500 5,000 If Pompeii's replaces the transmission of the pizza delivery vehicle, they expect to be able to use the vehicle for another 5 years. If they sell the old vehicle and purchase a new vehicle, they will use that vehicle for 5 years and then trade it in for another new pizza delivery vehicle. If they trade for the new delivery vehicle, their operating expenses will decrease because the new vehicle is more gas efficient and the maintenance on a new car is less. This…
Consider the market for running shoes. Draw a firm's average total cost curve with no advertising. Label it ATCO Draw the firm's average total cost curve with advertising. Label it ATC₁. If the firm successfully advertises, the quantity produced increases such that OA. total cost increases and average total cost increases OB. total cost decreases and average total cost increases C. total cost increases and average total cost decreases OD. total fixed cost decreases Click the graph, choose a tool in the palette and follow the instructions to create you