Suppose you are going to drive home this weekend, a round trip of 150 miles. Your car gets 30 miles per gallon of gas and expect gas to cost P 150 per gallon. Insurance and depreciation are P 10,000 per year. You usually drive 12,000 miles per year. A friend asks you to take her along. She lives a mile from your home.

Required:

1. What are the costs of taking your friend along as opposed to going by yourself?
2. Suppose now that you are not planning on going home. Your friend asks for a ride and you are willing to go. What are the costs of going as opposed to not going?