You can either take a bus or drive your car to work. A bus pass costs $5 per week, whereas driving your car to work costs $60 weekly (parking, tolls, gas, etc.). You spend half an hour less on a one-way trip in your car than on a bus. How would you prefer to travel to work if your wage rate is $10 per hour

By Bus

Explanation:

Travel cost for work using own car = $60 per week.

Travel cost for work using bus  =$5 per week.

Weekly savings if one opts to travel by bus instead of using own car = $60 - $5 = $55

No. of hours saved if one commutes by car = 5 hours

Since, the hours saved represent wages that could be earned,

Hours lost by commuting by bus in monetary terms = 5 hours × $10 per hour.

= $50 per week.

Net gain of travelling by bus per week instead of car = $55 - $50 = $5

Since, the gain is positive, travel by bus is more beneficial.

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