Question:

Question about net benefit for economics class?

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Jim's truck is almost out of gas. He can fill it up for $50 at the Shell station. At the Chevron station across the street, he can fill-up for $45, but it will take 15 minutes longer because of the waiting line. Jim values his time at $40 per hour. For Jim, the net benefit of filling-up at the Chevron station equals $_____.

-My guess is -5 dollars

Someone help?

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2 ANSWERS


  1. ...once again proving that economics is not a science.


  2. Cost of Shell: $50

    Cost of Chevron: $45 + $40*1/4=$55

    The net benefit of filling up at Chevron is -$5; it's better to fill up at the Shell.

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