Nerida Kyle is thinking of buying a new car to avoid taking the bus to work. Each of the following is a cost she should consider when using the cost-benefit principle to evaluate this decision EXCEPT
A)parking.
B)car insurance.
C)bus fare.
D)repairs.

Question

Quizplus · Accepted Answer

The cost of continuing to take the bus is not a relevant cost when evaluating the cost-benefit of buying a car. The relevant costs are those associated with owning and maintaining a car, such as parking, car insurance, and repairs. Therefore, the cost of bus fare can be excluded from consideration.

Nerida Kyle Is Thinking of Buying a New Car to Avoid