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 than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $112 for the suit.

STORE Travel time ech way Price of suit

Local Department Store 15min $ 112

Across Town 30 min $ 89

Neighboring City 60 min $ 70

Juanita makes $26 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $26 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.

Store Opportunity Cost of Time Price of a Suit Total Cost

(Dollars) (Dollars per suit) (Dollars)

Local Department Store ____?______ $ 112 ____?______

Across Town ____?______ $ 89 ____?______

Neighboring City _____?_____ $ 70 ____?______

Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the __?_____

Local Department Store

or

Across Town

or

Neighboring City