00:01
And it asks us to think about fixed and variable costs associated with owning a car.
00:06
So we can think about some fixed costs.
00:08
These are costs that are going to exist whether or not how much you drive.
00:14
Right.
00:15
So if you drive 1 ,000 miles or 5 miles, these costs are still going to exist.
00:19
And these costs are car insurance and sort of road taxes that you have to pay, as well as the cost of if you're renting it, of cost of renting a car or just cost of buying a car.
00:34
Then you have the variable costs and the main variable cost is going to be fuel, how much you're driving.
00:41
Maintenance can also be a sort of variable cost like oil changes every 5 ,000 miles, right? it depends how quickly you drive that 5 ,000 miles.
00:51
So now let's think about in the case of whether or not you're driving or flying to florida, you only want to you're only going to take into account variable costs...