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Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but one is more convenient for Juanita to get to. For example she can go to her local store, located 15 min away from her job and pay a marked up price of $104 for the skirt. Local dept store. 15 min each way - $104 for skirt Across town 30 min each way- $87 for skirt Neighboring city 60 min each way-$80 for skirt Juanita makes $36 hr at work. She has to take time off to purchase skirt so each hour away from work cost her $36. Assume that returning to work takes Juanita takes the same amount of time as getting to the store and then takes her 30 min to shop. Ignore the cost of gasoline and depreciation on her car. Calculate the opportunity cost of Juanitas time and total cost for shipping at each location Local dept store Across town Neighboring city Assume that Juanita takes opportunity cost and the price of the skirt into consideration when she shops. She will minimize the cost of the skirt if she shops at
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