Question

Suppose you are considering whether to drive your car or fly about 770 miles to Colorado for a summer vacation . Which costs—fixed, variable, or both—would you take into account in making your decision? Would any implicit costs be relevant? Explain.

Answer 1

Step-by-step explanation:

Depending on the choice of means of transportation to embark on the summer vacation to Colorado

Using of Aircraft

Fixed Costs Variable Costs

Flight Ticket; Food & drinks while waiting at the

Fare to the Airport; Lounge;

Fare from Airport to Vacation Cost of coverage (Videos and/or pics)

Location;

Lodging cost

Feeding & drinking costs

Costs of moving around Colorado; e.t.c.

Using Personal Card

Fixed Costs Variable Costs

Cost of servicing of the car Food & drinks while travelling on

Gasoline road;

Tolls

There is an implicit cost of forfeiting the use of my personal car for the use of aircraft considering the cost and ease of usage.