Liza needs to buy a textbook for the next economics class. The price at the university bookstore

Question:

Liza needs to buy a textbook for the next economics class. The price at the university bookstore is $65. One website offers it for $55, and another site, for $57. All prices include sales tax. The accompanying table indicates the typical shipping and handling charges for the textbook ordered online.

Delivery time Shipping method Charge Standard shipping 3-7 days $3.99 2 business days Second-day air 8.98 1 business day

a. What is the opportunity cost of buying online instead of at the bookstore? Note that if you buy the book online, you must wait to get it.

b. Show the relevant choices for this student. What determines which of these options the student will choose?

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...

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