he average price of gasoline in your neighborhood is $2.99 per gallon. Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.43 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial. No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. Yes, the lower price of gasoline at the rival

he average price of gasoline in your neighborhood is $2.99 per gallon. Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.43 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial. No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. Yes, the lower price of gasoline at the rival

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 10SQP

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