Question

Suppose apartments are in four locations: Location A, Location B, Location C, and Location D. Location A is in the city, where your job is. Location B is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location B, and Location D is 10 minutes farther than Location C. In turn, similar apartments in Location B rent for $185 less per month than apartments in Location A, apartments in Location C rent for $185 less than in Location B, and apartments in Location D rent for $185 less than in Location C. Suppose the value of your time is $16 per hour and you work 21 days per month, with each day requiring a round-trip commute from your apartment to work. For simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent an apartment. You should rent an apartment in Location A Location B Location D Location C Click to select your answer(s) and then click Check Answer. part remaining Clear All Final Check

Answer 1

Location A is the answer if you assume that the time wasted for traveling can be utilised to earn money for an extra hour.