every day, 500 airplanes in san francisco incur an additional 30 minutes of airport delays when flying into…

every day, 500 airplanes in san francisco incur an additional 30 minutes of airport delays when flying into or out of the airport. in chicago, the delays amount to 15 minutes for 1,200 airplanes. if the price of time is $30/hour in san francisco and $20/hour in chicago, which airport incurs the largest opportunity cost? select one: a. san francisco b. chicago c. the opportunity cost would be the same in either city. d. too little information to determine.

every day, 500 airplanes in san francisco incur an additional 30 minutes of airport delays when flying into or out of the airport. in chicago, the delays amount to 15 minutes for 1,200 airplanes. if the price of time is $30/hour in san francisco and $20/hour in chicago, which airport incurs the largest opportunity cost? select one: a. san francisco b. chicago c. the opportunity cost would be the same in either city. d. too little information to determine.

Answer

Explanation:

Step1: Calculate opportunity cost for San Francisco

First, convert 30 minutes to 0.5 hours. Then, the opportunity cost for San Francisco is the number of airplanes times the delay in hours times the price - per - hour. So, $500\times0.5\times30$. $500\times0.5\times30 = 500\times15=7500$.

Step2: Calculate opportunity cost for Chicago

Convert 15 minutes to 0.25 hours. The opportunity cost for Chicago is the number of airplanes times the delay in hours times the price - per - hour. So, $1200\times0.25\times20$. $1200\times0.25\times20=1200\times5 = 6000$.

Step3: Compare opportunity costs

Since $7500>6000$, San Francisco has a higher opportunity cost.

Answer:

A. San Francisco