Wendy Has to Decide Between Taking a Flight and Driving

question 83

Essay

Wendy has to decide between taking a flight and driving to California.Air tickets cost $800 and will get her to California in 2 hours.If she decides to drive,she would need $300 worth of gasoline and 10 hours to reach her destination.Suppose Wendy's opportunity cost of time is $20 per hour.
a)Assuming that there are no other costs involved,use cost-benefit analysis to decide whether she should fly or drive to California.
b)If Wendy has an important business meeting to attend and this increases her opportunity cost of time to $200 per hour,will her optimum decision change? Explain.

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Definitions:

Basic Units

Fundamental components or building blocks that form the basis of a complex structure or system.

Sociocultural Psychologists

Professionals in psychology who examine how social and cultural factors influence human behavior and mental processes.

The Mind

The set of cognitive faculties that encompasses consciousness, perception, thinking, judgement, and memory.

Experimental Group

The group in an experiment that receives the variable being tested, as opposed to the control group which does not.