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Question: 2 determining opportunity cost juanita is deciding whether to buy...

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2. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as weil as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the suit: Original price Store Local Department Store Across Town Neighboring City Travel Time Each Way (Minutes) 15 30 Price of a Suit (Dollars per suit) 103 63 uanita makes $16 an hour at work. She has to take time off work to purchase her suit, so each hour aws MacBook Pro 3 4 5 6 8
Travel Time Each WayPrice of a Suit (Dollars per sult) 103 89 63 (Minutes) 15 Store Local Department Store Across Town Neighboring City Juanita makes $16 an hour Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. at work. She has to take time off work to purchase her suit, so each hour away from work costs her $16 in lost income. Complete the following table by computing the opportunity cost of Juanitas time and the total cost of shopping at each location Price of a Suit (Dollars per suit) Total Cost (Dollars) 119.00 Opportunity Cost of Time (Dollars) 6.00 24.00 Store 103 113.00 Across Town 63 Neighboring City Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the MacBook Pro
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