Question
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
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.
Store: Travel Time Each way Price Per suit
Local Department Store 15 103
Across Town 30 89
Neighboring City 60 63
Compute the time and cost it would take at each location:
Store: Opportunity Cost of Time Price per suit Total Cost
Local Department Store ? 103 ?
Across Town ? 89 ?
Neighboring City ? 63 ?
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