I have question about MANAGERIAL ECONOMICS INA GLOBAL ECONOM

I have question about \'\'MANAGERIAL ECONOMICS INA GLOBAL ECONOMY 8th Edition\'\'

In Page 94 (Chapter 3)

Disscussion question #11

\'\'How does the value of a Businessperson\'s time affect his or her decision to fly or drive on a businesstrip?\'\'

This uestion We think about value of Businessmen\'s time right?

So it\'s like if he pick to fly, it will be quicker to go and back but it willcost more than drive.

If he pick drive, it will be cheaper but it will take long time to go and back sohe will be out of office maybe day or half day.

Something like that ? I can not find exaple or something talking about this on chapter 3.

Please let me know what you think.

Solution

Businessperson’s time is precious or valuable, since wasting time could disrupt his/her economical activity. Suppose during the course of a journey a businessperson could do any sales promotion act or could engage in production function. These could not be happened because of his/her non-productive activity like journey.

But journey also must not be overruled, since it sets platform of meeting, gathering information, etc. Therefore, the mode of journey which takes the minimum time should be chosen. Since flying is speeder than driving, businessperson should fly.