What would be the opportunity cost of driving to California for a vacation instead of flying?
Trade off
. Giving up time but also giving up payment for parking and waiting in line in security. cheaper to drive so can spend more money in California.
What is the opportunity cost of taking a vacation?
The opportunity cost of taking a vacation instead of spending the money on a new car is not getting a new car. When the government spends $15 billion on interest for the national debt, the opportunity cost is the
programs the money might have been spent on, like education or healthcare
.
Is flying cheaper than driving?
If you have a travelling party who can share the fuel cost,
driving will usually be the cheaper method of travel
. Driving will nearly always take longer than flying, so if you just want to get to your destination without fuss, flying is probably your best bet.
What is an example of opportunity cost in your life?
A student spends three hours and $20 at the movies the night before an exam. The opportunity cost
is time spent studying and that money to spend on something else
. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).
What is opportunity cost and example?
When economists refer to the “opportunity cost” of a resource, they
mean the value of the next-highest-valued alternative use of that resource
. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can't spend the money on something else.
How bad is an 8 hour drive?
As a general rule, it's safe to drive for no longer than eight hours a day,
taking breaks of at least 15 minutes every two hours
. This means you can safely drive for around 500 miles, not taking into account external factors such as slowing for tolls, traffic, travelling with children, and tiredness.
When should I fly VS drive?
A common rule of thumb says
if the driving distance is 4 hours or less
, it's more cost effective to drive. But many times, driving 5, 6, or even 10 hours is still a better deal than flying, depending on where you're going. This is often the case if your destination airport is in a small town or has limited flights.
How long can you drive without stopping?
‘ The average car can usually run for
around 7-8 hours
before you need to stop in order to add more fuel to your car. Although this is technically a rest, as your engine will be turned off, and you won't be moving, it will not be rest for the sake of your car, it will only be done so that you can continue to drive it.
What is opportunity cost simple words?
What Is Opportunity Cost? Opportunity costs
represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another
. … Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
What are three types of opportunity cost?
Three phrases in the definition of opportunity cost
warrant further discussion–alternative foregone, highest valued, and pursuit of an activity
.
What is opportunity cost in decision-making?
Put simply, opportunity cost is
what a business owner misses out on when selecting one option over another
. It's a way to quantify the benefits and risks of each option, leading to more profitable decision-making overall.
Why is opportunity cost important?
The concept of Opportunity Cost
helps us to choose the best possible option among all the available options
. It helps us to use every possible resource tactfully, efficiently and hence, maximize economic profits.
Which scenario is the best example of opportunity cost?
The correct answer is a.
A computer company produces fewer laptops to meet tablet demand
. Opportunity cost defines the benefit obtained by having a commodity after forgoing some other commodity. In the problem statement, the computer company incurs an opportunity cost of laptops for tablets.
What is the formula for opportunity cost?
Opportunity cost is the benefit you forego in choosing one course of action over another. You can determine the opportunity cost of choosing one investment option over another by using the following formula:
Opportunity Cost = Return on Most Profitable Investment Choice – Return on Investment Chosen to Pursue
.
Can I drive 1000 miles in a day?
Although it's possible,
you cannot drive 1000 miles in a day safely with a single driver
. This would involve approximately 16 hours of driving before accounting for traffic and rest stops. Assuming a total travel time of 20 hours, you would need to depart in the early hours and share the driving.
How can I drive 7 hours alone?
- Set a limit to how many hours that you will drive each day and stick to it. …
- Make a playlist before you leave. …
- Stop at truck stops, not rest areas. …
- Stretch every time that you stop. …
- Buy an extra cell phone car charger and keep it in your glove box.
