Some people choose to live close to the city center; others choose to live away

Question

Some people choose to live close to the city center; others choose to live away from the city center and take a longer commute to work every day. Does this mean that those who stay away from the city center are being irrational? A. No, because their opportunity cost of commuting must be lower. B. Yes, because their direct commuting costs must be higher. C. Yes, because people have different preferences. D. Yes, because people face direct and indirect commuting costs. E. No, because people face the same living costs in and away from the city.

Explanation / Answer

Ans: A

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