By taking an airplane Larry can travel from Denver to Houston in one hour. The same trip

Question:

By taking an airplane Larry can travel from Denver to Houston in one hour. The same trip takes 5 hours by bus. Airfare is $90 and the bus fare is $30. Larry, when he is not traveling, can work and earn $30/hour. Answer the following questions:
a. What is the (OC) for Larry of traveling by bus?
b. What is the OC for Larry of traveling by plane?
c. Which is the cheaper mode of travel for Larry?
d. How would the answers be different for another person Moe (who can work and earn $6/hour when he is not traveling)?
Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...