Identify each of the following costs associated with owning an automobile as direct (D) or indirect (I). Assume a direct cost is one that is directly attributable to the number of miles driven. (a) License plate, (b) Drivers license, (c) Gasoline, (d) Highway toll fee, (e) Oil change, ( f ) Repairs after collision, (g) Gasoline tax, (h) Monthly loan payment, (i) Annual inspection fee, and ( j ) Garage rental.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
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Identify each of the following costs associated with
owning an automobile as direct (D) or indirect (I).
Assume a direct cost is one that is directly attributable
to the number of miles driven. (a) License
plate, (b) Drivers license, (c) Gasoline, (d) Highway
toll fee, (e) Oil change, ( f ) Repairs after collision,
(g) Gasoline tax, (h) Monthly loan payment, (i) Annual
inspection fee, and ( j ) Garage rental.

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