Shannon O'Reilly is trying to decide whether to continueto take public transportation to work or to purchase a car. Beforemaking her decision, she would like to compare the cost of usingpublic transportation and the cost of driving a car.
Required
- What activity measure should Shannon use as she estimates thecost of driving?
- What should Shannon view as incremental (variable or out-of-pocket) costs of driving from home to work?
- What are some fixed costs of driving a car?
Suppose that if Shannon purchased a car, she would use it to take a2-week scenic vacation by car. What activity measures might Shannon use to estimate her vacation and lodging expenses?