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3. Determining opportunity cost Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and
3. 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 Discounted Marked-up price more convenient for Ciana to reach than others. One option price is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $110 for the sneakers: Juanita's office Original price Travel Time Each Way Price of a Sneakers Store (Minutes) (Dollars per sneakers) Local Shoe Store 15 110 Different Neighborhood in Town 30 97 Rural Outlet 60 73Complete the following table by computing the opportunity cost of Ciana's time and the total cost of shopping at each location. Opportunity Cost of Time Price of a Sneakers Total Cost Store ( Dollars) (Dollars per sneakers) (Dollars) Local Shoe Store 110 Different Neighborhood in Town 97 Rural Outlet 73 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 theStore ( Dollars) (Dollars per sneakers) (Dollars) Local Shoe Store Different Neighborhood in Town rural outlet Rural Outlet local shoe store store in the different neighborhood in town Assume that Ciana considers both her o en making her shopping decision. Ciana will minimize her cost of buying the sneakers if she shops at the
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