To choose: An option from the given options.

Question

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Answer 1

Question

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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 determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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 determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

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 determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

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Answer 2

Question

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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 determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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 determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

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 determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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 determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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 determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

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 determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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 determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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 determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

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 determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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 determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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 determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

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 determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

Answer 6

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

a).

Expert Solution

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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.

Answer 7

Chapter 1, Problem 59P

a).

To determine

To choose:An option from the given options.

Answer 8

a).

Expert Solution

Answer to Problem 59P

The driver will choose the option (1) return the car with full tank.

Answer 9

a).

Expert Solution

Answer 10

a).

Expert Solution

Answer 11

Expert Solution

Answer 12

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:

Gas Consumed=15025=6 gallons

Cost of filling tank=6×3.5=$21

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.

Answer 13

b).

To determine

To choose:An option from the given options.

b).

Expert Solution

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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.

Answer 14

b).

To determine

To choose:An option from the given options.

Answer 15

b).

Expert Solution

Answer to Problem 59P

The driver will choose option (1) return car with full tank.

Answer 16

b).

Expert Solution

Answer 17

b).

Expert Solution

Answer 18

Expert Solution

Answer 19

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:

Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5=$42

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.

Answer 20

c).

To determine

To choose:An option from the given options.

c).

Expert Solution

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Answer 21

c).

To determine

To choose:An option from the given options.

Answer 22

c).

Expert Solution

Answer to Problem 59P

The driver will choose option (3) accept a fixed price of $60 for gas.

Answer 23

c).

Expert Solution

Answer 24

c).

Expert Solution

Answer 25

Expert Solution

Answer 26

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5=$63

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Answer 27

d).

To determine

To choose:An option from the given options.

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

Answer 28

d).

To determine

To choose:An option from the given options.

Answer 29

d).

Expert Solution

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:

Cost of stopping at gas station=15×2060=$5

Part (a) When the driver drives 150 miles.

The gas consumed and cost to filling the emptied tank is calculated as follows:

Gas Consumed=15025=6 gallonsCost of filling tank=6×3.5+5=$21+5=$26

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: Gas Consumed=30025=12 gallonsCost of filling tank=12×3.5+5=$42+5=$47

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:

Gas Consumed=45025=18 gallonsCost of filling tank=18×3.5+5=$63+5=$68

Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.

Answer 30

d).

Expert Solution

Answer 31

d).

Expert Solution

Answer 32

Expert Solution

Answer 33

Economics Concept Introduction

Opportunity Cost: It is the cost of the next best alternative forgone while doing an action.

Answer 34

Ch. 1 - Prob. 1QTC Ch. 1 - Prob. 2QTC Ch. 1 - Prob. 1P Ch. 1 - Prob. 2P Ch. 1 - Prob. 3P Ch. 1 - Prob. 4P Ch. 1 - Prob. 5P Ch. 1 - Prob. 6P Ch. 1 - Prob. 7P Ch. 1 - Prob. 8P

To choose: An option from the given options.

To choose:An option from the given options.

Answer to Problem 59P

Explanation of Solution

To choose:An option from the given options.

Answer to Problem 59P

Explanation of Solution

To choose:An option from the given options.

Answer to Problem 59P

Explanation of Solution

To choose:An option from the given options.

Explanation of Solution

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