A driver makes the following estimates in considering the purchase of a car which she intends...

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A driver makes the following estimates in considering the purchase of a car which she intends to use only when she would otherwise have used public transport. purchase price of car value of car after one year car operating and repair costs, insurance and taxation for one year cost of using public transport for one year instead of travelling by car potential earnings after tax on $6000 invested for one year $ 6000 4500 1800 800 500 What will be the opportunity cost in monetary terms to the driver over the year of travelling by car rather than by public transport? A driver makes the following estimates in considering the purchase of a car which she intends to use only when she would otherwise have used public transport. purchase price of car value of car after one year car operating and repair costs, insurance and taxation for one year cost of using public transport for one year instead of travelling by car potential earnings after tax on $6000 invested for one year $ 6000 4500 1800 800 500 What will be the opportunity cost in monetary terms to the driver over the year of travelling by car rather than by public transport?

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To calculate the opportunity cost of traveling by car instead of public transport we need to conside... View the full answer