Economics

Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores then others. For example, she can go to her local store, located 15 Discounted price minutes away from where she works, and pay a marked-up Marked-up price price of $103 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit Store (Minutes ( Dollars per suit) Local Department Store 15 103 Across Town 30 85 Neighboring City 63 Juanita makes $16 an hour 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. 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. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time Price of a Suit Total Cost Store (Dollars) "Dollars per suit (Dollars) Local Department 103 local department store Across Town 85 Neighboring City store in the neighboring city store across town Assume that Juanita price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the