What is an oppurtunity cost of choosing public transportation over owning a car?
- Say_What?Lv 51 decade agoFavorite Answer
"Opportunity Cost" is a hidden cost incurred that prevents you from using the money involved for some other purchase.
Here I would say the "Opportunity Cost" is related to time. There is an old adage in business: "Time is money."
For the most part it is faster to get from point A to point B if you have your own vehicle because:
1) You can decide the schedule rather than having to adhere to a preset schedule for the public transportation.
2) You can do a non-stop trip whereas public transportation (even "expresses" often have other stops.
3) You can go from point of origin to point of destination without many intermediate steps with your own car. (Typically parking lot to parking lot.) Whereas with public transportation you may need to walk or ride a bike some distance to get to the pick up point then walk or ride a bike some distance after the drop off point.
4) The schedules of public transportation often do not fit shift work. If you have to go to work at 1 AM you may not be able to do so on public transportation.
Say you are someone who gets paid for hourly work but get paid extra for working midnights. Use of public transportation has a direct "opportunity cost" because it might limit you to the lower pay rate of working days. Also if you aren't normally a shift worker but have the opportunity for extra pay due to overtime but know you have to leave to catch "the last bus" you've incurred another "opportunity cost".
Or imagine you sell real estate. Someone wants you to show them a house and you tell them "OK we'll meet on the A train and walk over after we get off at the stop". Chances are you won't have many clients willing to do that. Your "opportunity cost" goes to the fact that you couldn't take them to the location yourself. Or even if they are willing to meet you at the location they may not be willing to wait until the specific time the public transportation would get you there.
On the flip side of course is that it costs a fair amount of money to buy and maintain a car let alone put gas in it.
- cardejonLv 44 years ago
chop up the variation and do Philly CarShare. (it incredibly is supposedly the biggest interior the rustic, besides the reality that i could be improper approximately that.) Parking could be confusing reckoning on the place you are going to yet not inevitably, and there is often garages for the very middle downtown (and that they are decrease than NYC). Your hotel would have loose parking if it incredibly is close to the airport, besides the reality which you're an outstanding 20-half-hour from the downtown. yet public delivery in Philly is very crappy, and there are not that many cabs, different than for thirtieth St. station.
- Anonymous1 decade ago
the opportunity is that you own a car and you rely on no one to take you to and from.. thro the cost will be more to you