Comment on the following statement: "I decided to buy a car from a dealer in a town 100 miles away because he was offering a price that was $100 lower than the dealer in my hometown. Therefore, I saved $100"
What will be an ideal response?
Assuming that the individual had no other reason to travel the 100 miles, the savings from the purchase of the car is less than $100 . Travel costs should be taken into account, including the opportunity cost of time.
Economics
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