Q 12.36. You have to purchase $600 worth of sta- ples. You have just found out that

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Q 12.36. You have to purchase $600 worth of sta- ples. You have just found out that the stationery store across from you charges $300 more than the ware- house outlet 20 miles away. Would you spend the 40 minutes to drive to the warehouse? Now, assume you are buying a Porsche that costs $100,000. You have just found out that the Porsche dealer also 40 min- utes away offers the Porsche for $300 less. Assuming you can receive after-market service in both locations, would you drive 40 minutes to pay $99,700? What should you do from an economic perspective? Is this what you would be tempted to do?

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