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Unformatted text preview: 2. The university has built a new parking garage. There is always an available parking spot, but it costs $1 per day. Before the new garage was built, it usually took 15 minutes of cruising to find a parking space. Compare the opportunity cost of parking in the new garage with that in the old parking lot. Which is less costly and by how much? The financial cost of the parking garage is $365 per year. The cost in time before the parking garage was built was 91 hours and 15 minutes per year. Again the answer of which option is least costly and by how much is entirely subjective to how the individual in question values his time. I would personally value 91.25 hours of my life significantly higher than $365 dollars....
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- Spring '08