If you rent a car, you can (1) return it with a full gas tank (2) return it without filling it and pay $3.45/gallon, or (3) accept a fixed price of $35 for gas. The local price is $3.15/ gallon for gasoline, and you expect this car to get 28 miles per gallon. The car has a 20-gallon tank. What choice should you make if you expect to drive: (a) 150 miles? (b) 350 miles? (c) 500 miles?

Answer rating: 100% (QA)

The best decision is approached by analyzing the cost of the three alternatives The cheaper alternat... View the full answer