Question $48$

$2$ pts

Braxton and Kaih are shopping for their first home. They have found two houses that are nearly identical except for their locations. One house costs $$250,000$ and is $15$ miles from their places of employment. The second house costs $$275,000,$ but it is within five miles of their work. Now Braxton and Kaih are tryiijg to decide if living $10$ miles closer to their workplaces is worth the extra $$25,000$ in the house cost. Which decision$-$making concept are they using?

Opportunity cost

Marginal analysis

Time value of money

Total utility