Economy ? Can anyone list several fixed and variable costs associated with owning and operating an automobile?
gymnast to phlebotomist asked:
List several fixed and variable costs associated with owning and operating an automobile. Suppose you are considering whether to drive your car or fly 1000 miles to Florida for spring break. Which cost-fixed, variable, or both- would you take into account in making your decision? Would any implicit costs be relevent? Can you explain this?
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List several fixed and variable costs associated with owning and operating an automobile. Suppose you are considering whether to drive your car or fly 1000 miles to Florida for spring break. Which cost-fixed, variable, or both- would you take into account in making your decision? Would any implicit costs be relevent? Can you explain this?
March 17th, 2010 at 1:47 pm
First of all, be sure you want to come in the first place: I live south of Cocoa Beach and it’s still FREEZING COLD here! Daytime highs are 15-20 degrees below normal (lower 60s with wind), and we’ve been having wind chills in the low 30s at night. The water temperature is still only in the 50s - way too cold for swimming. Check the weather reports!
OK, driving versus flying: driving puts wear and tear on your vehicle, and depending on how good your car is, you may suffer a breakdown. Depending on where you will be staying, you may also have to pay extra for parking. Be sure your insurance is up-to-date, and if you can afford it, invest in a AAA membership. You’ll have to deal with maps and directions and driving in unfamiliar territory. Gas prices are on the rise so that is a consideration too, especially if you own a gas hog. The obvious upshot is, you have complete autonomy and can go wherever and whenever you please. BIG PLUS!
If you fly, however, it may seem like a lot of money but at least you know your car is safe and sound at home. You will be there in a matter of hours instead of 2-3 days. Most spring break destinations have plenty of public transportation but the best way to get around is just to walk. Or you could get the best of both worlds and fly there and back, and rent a car or scooter. gretch_graphics