2. Determining opportunity cost

Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $118 for the sneakers:

StoreTravel Time Each WayPrice of a Sneakers(Minutes)(Dollars per sneakers)Local Shoe Store15118Different Neighborhood in Town3096Rural Outlet6078

Ciana earns an hourly wage of $26 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $26 in lost income. Assume that Cianas travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Ciana incurs no additional costs other than the sneakers, such as gas.

Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location.

StoreOpportunity Cost of TimePrice of a SneakersTotal Cost(Dollars)(Dollars per sneakers)(Dollars)Local Shoe Store 118 Different Neighborhood in Town 96 Rural Outlet 78

Assume that Ciana considers both her opportunity costs and the price of sneakers when making her shopping decision. Ciana will minimize her cost of buying the sneakers if she shops at the .