Opportunity cost (LO1). Suppose Greyhound charges $102 for a one way trip from Washington DC to Chicago, IL. An individual approaches the ticket counter one day at Washington DC just before a bus is...

Opportunity cost (LO1). Suppose Greyhound charges $102 for a one way trip from Washington DC to Chicago, IL. An individual approaches the ticket counter one day at Washington DC just before a bus is about to leave for Chicago. However, this person wants a ticket for $40 because there are numerous empty seats still on the bus.

Required:

a. What is the cash flow to Greyhound from issuing the ticket to the individual at $40?

b. What is the opportunity cost to the Greyhound bus service of allowing the individual to travel? That is, what is the cash flow associated with denying the request to travel for $40?

c. Is there any longer-term consideration that Greyhound must take into account in permitting such travelers? Should company policies accommodate such instances?