S can either drive to work, which takes halfan hour and uses $1.50 worth of gas。 OEF taKe
e bus, which takes an hour and costs $1.00. How should Pat get to work?2 QQciy仿 年!5 4 dry2-
和. Pat should take the bus because it costs $0.50 less than driving, ww
B. Pat should drive because it saves halfan hour relative to taking the bus. 2
C. Pat should drive ifsaving halfan hour is worth $0.50 or more.
D. Pat should take the bus ifsaving halfan hour is worth $0.50 or more.
Ans:
Feedback: According to the Cost-Benefit Princeiple, Pat should drive ifthe marginal benefit of
driving (saving halfan hour) is greater than its marginal cost ($0.50).