a).
To choose:An option from the given options.
a).
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:
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 choose:An option from the given options.
b).
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:
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 choose:An option from the given options.
c).
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:
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 choose:An option from the given options.
d).
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:
Part (a) When the driver drives 150 miles.
The gas consumed and cost to filling the emptied tank is calculated as follows:
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:
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:
Therefore, the driver will choose to accept a fixed cost of $60 as this is less than the cost of filling the tank.
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Chapter 1 Solutions
ENGR.ECONOMIC ANALYSIS
- Automobile repair shops typically recom- mend that their customers change their oil and oil filter every 4,000 miles. Your automobile user's manual suggests changing your oil every 6,500–8,500 miles. If drive you your car 52,000 miles each year and an oil and filter change costs $31, how much money would you save each year if you had this service performed every 6,500 miles?arrow_forwardKindly provide the correct option attachedarrow_forwardAfter eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the Multiple Choice marginal benefit for the fourth pizza slice is negative. total benefit for the fifth pizza slice is negative. marginal benefit for the fifth pizza slice is less than its marginal cost. marginal benefit for the fourth slice is the largest among all slices. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.arrow_forward
- Which is correct option ?arrow_forwardYou have choice when subscribing to our magazine. Which is the best deal for you, the subscriber, if your opportunity cost of funds is 10%? pay $28 at the beginning of each year for four years pay $54 today and $54 again two years from today pay $100 now for a four year subscription no one is superiorarrow_forwardPlease assist with the multiply choices attachedarrow_forward
- Suppose Jay has been experiencing back pain and that there are two options for back pain: Treatment Regimen Total Cost Pain Reduction Do nothing $0 0 units Cortisone injections $600 30 units Calculate the ICER between cortisone injections and doing nothing. Jay says he is willing to pay $10 for a per unit of pain reduction. Should he choose cortisone injections? Another treatment is discovered. It costs $700 and reduces pain by 25 units. Should he choose the new treatment?arrow_forwardAll of the options are the same with each itemsarrow_forwardChoose correct option. Correctly nowarrow_forward
- 1. Identify the curve that represents the regular gasoline vehicle and hence determine the range of annual mileage for which it is the most economical of the three vehicle types. A. between 37,000 and 49,000 B. more than 49,000 C. less than 37,000 D. more than 37,000 E. less than 25,000 F. between 25,000 and 37,000 G. between 25,000 and 49,000 2. Identify the curve that represents the hybrid vehicle and hence determine the range of annual mileage for which it is the most economical of the three vehicle types. A. between 25,000 and 49,000 B. between 37,000 and 49,000 C. between 25,000 and 37,000 D. less than 37,000 E. more than 37,000 F. more than 49,000 G. less than 25,000arrow_forwardMarginal Cost of: C = 10 + 10q – 4q2 + q3 Thanks in advance!arrow_forwardPlease option clear..arrow_forward
