Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home.Which of the following is the most likely explanation for her behavior?

A) The opportunity cost of her time is very low.
B) She doesn't take travel time into consideration.
C) She doesn't like to cook or doesn't know how to cook.
D) The prices at the more expensive restaurant understate the opportunity cost of eating there.
E) The higher monetary cost of the more expensive restaurant is offset by the higher opportunity cost of the lower-priced restaurant.

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Chris flores · Accepted Answer

Final Answer : E, Explanation :  Melissa likely values her time highly, as a self-employed lawyer. Traveling further to the cheaper restaurant would consume more of her time, which has a high opportunity cost. Thus, the higher monetary cost of the closer, more expensive restaurant is justified by saving time, reducing the overall opportunity cost compared to traveling further to the cheaper restaurant.

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