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Angela is planning a trip to Las Vegas. She can either fly into Las Vegas or drive a rental car. The air ticket costs $500.
- Angela is planning a trip to Las Vegas. She can either fly into Las Vegas or drive a rental car. The air ticket costs $500. She can rent a car for $200 per week (cheaper than renting the car on a daily basis. So she plans to rent for a week even though she does not need the car after 6 days) and the trip takes exactly six days if she drives. She usually stays in Hilton whenever she travels and the expected cost is $100 per night (tax included). She would spend 4 nights in Las Vegas and two more nights on the way if she drives. Her food expenses would be $125 if she flies and $200 if she drives. The expected gas cost, if she drives, is $150. The opportunity cost of flying and driving options are:
Flying option | Driving option | |
A | ($1,150) | $1,150 |
B | (1,025) | $1,025 |
C | ($1,150) | ($1,025) |
D | $1,025 | $1,150 |
E | $1,150 | $1,025 |
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