A few factors that would affect my decision would be if Im t

A few factors that would affect my decision would be if I\'m traveling long distances or short term. What I mean by this is that ifI was driving out of town I would decide to stop by the gas station on the interstate because it\'ll be on my way out of town. Plus, it\'ll be 10 percent cheaper (which isn\'t much). On the other hand, if I was just staying locally I would just buy the local gas because it would be a waste of time if I drove 15 miles out of town and 15 back. Right? 10 percent isn\'t much compared to every other factor. Which can be miles on your car or even a car accident that could have been avoided by not going to that gas station. Now if gas was 5 dollars and the interstate gas station had it for 10% cheaper. I still wouldn\'t make the drive, because by the time I get back to town I would\'ve wasted what I thought I was saving. Unless. I was heading out of town again. This is assuming my cars miles per gallon is average, which is 23.6 according to the washingpost Do you agree bis opinion? Why? Ar least 5 sentence

Solution

Yes, you make the economically rational choice under cost benefit analysis. It can be explained as follows:

CASE-1

Hence, benefits > Costs, so you should definitely buy gas from interstate gas station.

CASE-2

Miles / gallon = 23.6

23.6 miles = 1 gallon

1 mile = 1/23.6 gallon

30 miles = 30/23.6 = 1.27 gallon

So in this case, your Costs are not just more than benefits i.e. 5.715 > 4.5 it is also more than costs if you had bought the gas locally i.e 5.715 > 5

Note that there is an extra cost of travelling to 30 miles in terms of time, which is not added here. So that would further inflate the costs.

Hence, you should not buy gas from interstate station if you are living locally.