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Store Local Shoe Store (Minutes) 15 Travel Time Each Way Price of a Boots (Dollars per boots) 110 Different Neighborhood in Town Rural Outlet
Store Local Shoe Store (Minutes) 15 Travel Time Each Way Price of a Boots (Dollars per boots) 110 Different Neighborhood in Town Rural Outlet 30 103 60 82 Juanita earns an hourly wage of $34 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $34 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Store Local Shoe Store Different Neighborhood in Town Rural Outlet Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) Total Cost (Dollars) 110 103 82 Assume that Juanita considers both her opportunity costs and the price of boots when making her shopping decision. Juanita will minimize her cost of buying the boots if she shops at the Suppose that Juanita is deciding whether or not to buy a pair of boots that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the boots she likes, but some stores are more convenient for Juanita to reach than others. One option 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 boots:Juanita earns an hourly wage of $34 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $34 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Assume that Juanita considers both her opportunity costs and the price of boots when making her shopping decision. Juanita will minimize her cost of buying the boots if she shops at the
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